ETF Ownership and Seasoned Equity Offerings
This article investigates the impact of exchange-traded fund (ETF) ownership on seasoned equity offerings (SEOs). We find that increases to firms’ ETF ownership is positively related to their propensity to conduct an SEO. ETF ownership is also associated with less negative SEO announcement returns,...
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| Veröffentlicht in: | Journal of financial and quantitative analysis 2024-06, Vol.59 (4), p.1821-1848 |
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| container_title | Journal of financial and quantitative analysis |
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| creator | Evans, Kevin P. Leung, Woon Sau Li, Junqiu Mazouz, Khelifa |
| description | This article investigates the impact of exchange-traded fund (ETF) ownership on seasoned equity offerings (SEOs). We find that increases to firms’ ETF ownership is positively related to their propensity to conduct an SEO. ETF ownership is also associated with less negative SEO announcement returns, smaller discounts, and better long-run stock returns. Our evidence is consistent with equity issuance following investor demand for stocks driven by greater participation in ETFs, suggesting a possible alternative source of market timing opportunity. |
| doi_str_mv | 10.1017/S002210902300042X |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0022-1090 |
| ispartof | Journal of financial and quantitative analysis, 2024-06, Vol.59 (4), p.1821-1848 |
| issn | 0022-1090 1756-6916 |
| language | eng |
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| source | Business Source Complete; Cambridge Journals |
| subjects | Arbitrage Capital markets Discounts Exchange traded funds Hedging Index funds Interest rates Liquidity Market timing Ownership Quantitative analysis Securities markets Securities offerings |
| title | ETF Ownership and Seasoned Equity Offerings |
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