Can corporate reputation complement or substitute underwriter reputation in seasoned equity offerings?

Announcements of seasoned equity offerings (SEOs) in Hong Kong, including open offers and rights issues, tend to induce negative price reactions that are more severe than in the Western sphere. We hypothesise that corporate reputation can narrow the information asymmetry between issuers and investor...

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Main Author: Ng, Xin Yin
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2021
Subjects:
Online Access:https://eprints.nottingham.ac.uk/63233/
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author Ng, Xin Yin
author_facet Ng, Xin Yin
author_sort Ng, Xin Yin
building Nottingham Research Data Repository
collection Online Access
description Announcements of seasoned equity offerings (SEOs) in Hong Kong, including open offers and rights issues, tend to induce negative price reactions that are more severe than in the Western sphere. We hypothesise that corporate reputation can narrow the information asymmetry between issuers and investors to mitigate the negative price reaction. Our analyses show, however, that corporate reputation is unable to mitigate the negative price reaction of SEOs in Hong Kong, although it appears to complement underwriter reputation in doing so. In contrast to the main body of research, we also find that offers underwritten by reputable underwriters are associated with more negative abnormal returns on announcement.
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spelling nottingham-632332021-08-02T02:33:53Z https://eprints.nottingham.ac.uk/63233/ Can corporate reputation complement or substitute underwriter reputation in seasoned equity offerings? Ng, Xin Yin Announcements of seasoned equity offerings (SEOs) in Hong Kong, including open offers and rights issues, tend to induce negative price reactions that are more severe than in the Western sphere. We hypothesise that corporate reputation can narrow the information asymmetry between issuers and investors to mitigate the negative price reaction. Our analyses show, however, that corporate reputation is unable to mitigate the negative price reaction of SEOs in Hong Kong, although it appears to complement underwriter reputation in doing so. In contrast to the main body of research, we also find that offers underwritten by reputable underwriters are associated with more negative abnormal returns on announcement. 2021-02-24 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/63233/1/Final%20draft.pdf Ng, Xin Yin (2021) Can corporate reputation complement or substitute underwriter reputation in seasoned equity offerings? [Dissertation (University of Nottingham only)] seasoned equity offerings
spellingShingle seasoned equity offerings
Ng, Xin Yin
Can corporate reputation complement or substitute underwriter reputation in seasoned equity offerings?
title Can corporate reputation complement or substitute underwriter reputation in seasoned equity offerings?
title_full Can corporate reputation complement or substitute underwriter reputation in seasoned equity offerings?
title_fullStr Can corporate reputation complement or substitute underwriter reputation in seasoned equity offerings?
title_full_unstemmed Can corporate reputation complement or substitute underwriter reputation in seasoned equity offerings?
title_short Can corporate reputation complement or substitute underwriter reputation in seasoned equity offerings?
title_sort can corporate reputation complement or substitute underwriter reputation in seasoned equity offerings?
topic seasoned equity offerings
url https://eprints.nottingham.ac.uk/63233/