Full metadata record
DC FieldValueLanguage
dc.contributorDepartment of Accountancyen_US
dc.creatorChing, Man-lai Ken-
dc.publisherHong Kong Polytechnic University-
dc.rightsAll rights reserveden_US
dc.titleTwo essays in seasoned equity offeringsen_US
dcterms.abstractThe first essay examines insider trading around seasoned equity offering announcements in Hong Kong. Consistent with prior studies, I find positive (negative) abnormal returns associated with the announcement of private placings (rights offerings). I find evidence that suggests insiders of placing firms delay trading to avoid legal and market penalties. Mature firms are more undervalued relative to growth firms after the announcement in the placing sub-sample. Furthermore, insiders sell (buy) because of a negative (positive) price response for mature (growth) firms in the rights offering sub-sample. The stock price response to the information content of insider trading depends on the type of security offered. A positive price response is observed for growth firms that announce placements. In general, growth opportunities rather than insider trading explain longer-term investment returns. The second essay examines whether pre-issue discretionary current accruals predict post-issue earnings performance and returns. I find evidence suggesting that offering firms borrow future income to manage earnings in pre-issue years and consequently earnings decrease in post-issue year 2. The information content of pre-issue discretionary current accruals is reflected in one-year buy and hold abnormal returns for the rights offering firms. The paper also examines whether the incidence of earnings management around SEOs depends on corporate governance structures. My result shows that SEO firms that have larger board size have a higher degree of earnings management around SEOs. This result is consistent with Jensen's (1993) view that smaller boards provide more of a controlling function than do larger boards.en_US
dcterms.extentvi, 126 leaves ; 30 cmen_US
dcterms.educationalLevelAll Masteren_US
dcterms.LCSHHong Kong Polytechnic University -- Dissertationsen_US
dcterms.LCSHCorporations -- Finance -- Mathematical modelsen_US
dcterms.LCSHInvestments -- Mathematical modelsen_US
dcterms.accessRightsopen accessen_US

Files in This Item:
File Description SizeFormat 
b16927035.pdfFor All Users4.27 MBAdobe PDFView/Open

Copyright Undertaking

As a bona fide Library user, I declare that:

  1. I will abide by the rules and legal ordinances governing copyright regarding the use of the Database.
  2. I will use the Database for the purpose of my research or private study only and not for circulation or further reproduction or any other purpose.
  3. I agree to indemnify and hold the University harmless from and against any loss, damage, cost, liability or expenses arising from copyright infringement or unauthorized usage.

By downloading any item(s) listed above, you acknowledge that you have read and understood the copyright undertaking as stated above, and agree to be bound by all of its terms.

Show simple item record

Please use this identifier to cite or link to this item: https://theses.lib.polyu.edu.hk/handle/200/1874