SEO performance and liquidity risk: Evidence from emerging markets

  • 蘇 昶睿

Student thesis: Master's Thesis


Abstract The research objective of this article is to examine whether liquidity can interpret the long-run underperformance of SEO firms Previous studies show that stock liquidity increases after seasoned equity offerings thus lowering the cost of capital My results show that liquidity improves after companies issue new shares in Asia-Pacific emerging markets However the post-SEO performance of the issuers remains significantly lower than that of their size and book-to-market matching firms I also use LCAPM to examine whether liquidity plays an important role in long-term underperformance of issuers My findings show that liquidity is an important pricing factor in Asia-Pacific emerging markets but it cannot fully interpret post-SEO performance Therefore there could exist another important pricing factor in Asia-Pacific emerging markets
Date of Award2014 Jan 6
Original languageEnglish
SupervisorPing-Hsun Huang (Supervisor)

Cite this