期刊名称：Academy of Accounting and Financial Studies Journal
印刷版ISSN：1096-3685
出版年度：2021
卷号：25
期号：3
页码：1-16
语种：English
出版社：The DreamCatchers Group, LLC
摘要：We examine the motivation why small firms conduct seasoned equity offerings (SEOs) by considering the SEOs of penny stocks in the U.S. market from 1990 to 2016. Our results do not strongly support the market-timing or the life-cycle hypotheses. However, they suggest that manipulation exists around SEOs as firms experiencing positive abnormal accruals are more likely to issue SEOs. A regulation scrutiny shock also negatively affects the probability of penny stock SEOs. We also detect evidence of the “dump and dilute” scheme surrounding the SEOs of penny stocks. Our findings, therefore, represent an alert to both investors and regulators to be more cautious when dealing with penny stocks surrounding their SEOs.
关键词：Penny Stocks;SEOs;Capital Structure;Market Timing;Corporate Life Cycle;Earnings Managemen
