Bilinski, Pawel; Liu, Weimin; Strong, Norman - In: Journal of Banking & Finance 36 (2012) 10, pp. 2770-2785
A seasoned equity offering (SEO) can improve a firm’s stock liquidity and lower its cost of capital. This paper examines whether SEO firms achieve a liquidity gain and the sources of this gain. It explores the role of liquidity risk in explaining SEO long-run performance. The evidence shows...