Is the Market Optimistic about the Future Earnings of Seasoned Equity Offering Firms?
检验增发公司长期股价表现不佳是否因投资者对未来盈利过度乐观，通过分析增发后五年内季度盈利公告的市场反应，发现投资者并未失望，结果不支持乐观预期假说。
The leading explanation for the post-issue long-run stock return underperformance of sea? soned equity offering firms is that investors have optimistic expectations regarding future earnings and the underperformance occurs as these expectations are corrected over time. To directly test this hypothesis, we examine investors' reaction to quarterly earnings an? nouncements over a five-year period following the offering for a large sample of seasoned equity issuing firms. In general, our evidence suggests that investors are not disappointed by earnings announcements that follow seasoned equity offerings. This result is not sen? sitive to widening the window over which earnings announcement returns are computed. This result also holds true for subsets of equity issuing firms classified as glamour issuing firms, Nasdaq listed issuing firms, and hot market issuing firms. The choice of these three subsets is predicated by extant evidence that these firms are likely to convey relatively more unfavorable information through their earnings announcements. Overall, our findings are inconsistent with the optimistic expectations hypothesis.