Timing Differences between SEO Methods

This paper investigates characteristics of Norwegian seasoned equity issuing companies. Literature about the timing issue has mainly been focusing on U.S. firm commitments, but we include rights issues and divide firm commitments into three subgroups, accelerated bookbuilt offerings, bought deals and fully marketed offerings. The main difference between the subgroups of firm commitments is that firms using accelerated bookbuilt offerings and bought deals have lower debt to assets ratio than firms using fully marketed offerings when issuing seasoned equity. Rights offer is usually not as well timed as firm commitments. The average book to market and debt to assets ratios are lower for companies that issue seasoned equity with firm commitments than for rights issuing firms.