Purpose – The purpose of this paper is to discover how firms use issue proceeds from seasoned equity offerings (SEOs). Design/methodology/approach – Utilizing a large sample of industrial corporations, the authors perform a series of regressions in which the dependent variable is one of six...

Purpose – The purpose of this paper is to discover how firms use issue proceeds from seasoned equity offerings (SEOs). Design/methodology/approach – Utilizing a large sample of industrial corporations, the authors perform a series of regressions in which the dependent variable is one of six...

We use compensation data for a sample of 701 US public firms and document a significant positive relation between the level of executive compensation and the subsequent realized stock returns. In present value terms, shareholders in firms incurring a total compensation cost of $78 million above...