316 B.E. Eckbo et al.
Ta b l e 1 3
Average market reaction (AR, %) to announcements of seasoned equity offerings (SEOs) by U.S. firms, clas-
sified by flotation method
Study Sample
size
Sample
periodAR
(%)(a) Firm commitments:N= 15 ,017;ARfc=− 2. 22 ∗
Asquith and Mullins (1986) 392 1963–1981 − 1. 6 ∗
Masulis and Korwar (1986) 972 1963–1980 − 1. 85 ∗
Mikkelson and Partch (1986) 80 1972–1982 − 3. 56 ∗
Kalay and Shimrat (1987) 455 1970–1982 − 3. 36 ∗
Korajczyk, Lucas, and McDonald (1990) 1 , 285 1974–1983 − 2. 94 ∗
Hansen and Crutchley (1990) 109 1975–1982 − 3. 65 ∗
Eckbo and Masulis (1992) 1 , 057 1963–1981 − 2. 0 ∗
Jegadeesh, Weinstein, and Welch (1993)a 411 1980–1989 − 1. 16 ∗
Slovin, Sushka, and Bendeck (1994)a 175 1973–1988 − 2. 87 ∗
Denis (1994) 435 1977–1990 − 2. 49 ∗
Bayless and Chaplinsky (1996) 1 , 884 1968–1990 − 2. 3 ∗
Altinkilic and Hansen (2003) 1 , 703 1990–1997 − 2. 23 ∗
Bethel and Krigman (2004) 2 , 592 1992–2001 − 2. 01 ∗
Heron and Lie (2004) 3 , 658 1980–1998 − 2. 5 ∗
D’Mello, Schlingemann, and Subramaniam (2005) 1 , 621 1982–1995 − 1. 87 ∗
(b) Private placements:N= 2 ,830;ARpp= 2. 45 ∗
Wruck (1989) 99 1979–1985 1. 89 ∗
Herzel and Smith (1993) 106 1980–1987 1. 72 ∗
Hertzel et al. (2002) 619 1980–1996 2. 4 ∗
Chaplinsky and Haushalter (2003) 1 , 050 1995–2000 3. 49 ∗
Krishnamurthy et al. (2005) 397 1983–1992 1. 43 ∗
Barclay, Holderness, and Sheehan (2005) 559 1979–1997 1. 7 ∗
(c) Uninsured rights:
Eckbo and Masulis (1992) 53 1963–1981 − 0. 59
(d) Standby rights:N=349;ARsr=− 1. 33 ∗
Hansen (1988) 102 1964–1986 − 2. 4 ∗
Eckbo and Masulis (1992) 128 1963–1981 − 0. 70 ∗
Singh (1997) 63 1963–1985 − 1. 07 ∗
Heron and Lie (2004) 56 1980–1998 − 1. 10
(e) Shelf offerings:N= 1 ,851;ARsh=− 0. 66 ∗
Bhagat, Marr, and Thompson (1985) 93 1982–1983 − 0. 81 ∗
Moore, Peterson, and Peterson (1986)b 84 1982–1983 − 1. 10 ∗
Denis (1991)c 40 1982–1986 − 1. 00 ∗
Heron and Lie (2004) 256 1980–1998 − 1. 30 ∗
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