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Title: Bank regulation, financial crisis and the announcement effects of seasoned equity offerings of US commercial banks
Authors: Li, Hui
Liu, Hong
Siganos, Antonios
Zhou, Mingming
Keywords: Seasoned equity offerings (SEOs)
Announcement stock returns
Banks
Bank regulation
Financial crisis
Issue Date: 2016
Publisher: © Elsevier
Citation: LI, H. ... et al, 2016. Bank regulation, financial crisis and the announcement effects of seasoned equity offerings of US commercial banks. Journal of Financial Stability, 25, pp. 37 - 46.
Abstract: This paper studies the differences in the announcement effects of seasoned equity offerings (SEOs) of commercial banks and non-banks, and explores the influence of bank regulation and the financial crisis on such differences. We find that abnormal stock returns on SEO announcements for US commercial banks are significantly higher than those of non-banks, consistent with the hypothesis that bank regulations reduce the likelihood that bank SEOs signal overpriced equity. The propensity score matching-based difference-in-difference analysis indicates that the differences in stock returns between banks and non-banks decreased during the 2007–2009 financial crisis period and increased after the passage of the Dodd-Frank Act in 2010.
Description: This paper is embargoed until December 2017.
Version: Accepted for publication.
DOI: 10.1016/j.jfs.2016.06.007
URI: https://dspace.lboro.ac.uk/2134/22065
Publisher Link: http://dx.doi.org/10.1016/j.jfs.2016.06.007
ISSN: 1572-3089
Appears in Collections:Closed Access (Business School)

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