Li, H., Liu, H., Siganos, A. and Zhou, M. (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. (doi: 10.1016/j.jfs.2016.06.007)
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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 2007-09 financial crisis period and increased after the passage of the Dodd-Frank Act in 2010.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Siganos, Professor Antonios and Liu, Professor Frank and Li, Miss Hui |
Authors: | Li, H., Liu, H., Siganos, A., and Zhou, M. |
College/School: | College of Social Sciences > Adam Smith Business School > Accounting and Finance |
Journal Name: | Journal of Financial Stability |
Publisher: | Elsevier |
ISSN: | 1572-3089 |
ISSN (Online): | 1878-0962 |
Published Online: | 23 June 2016 |
Copyright Holders: | Copyright © 2016 Elsevier |
First Published: | First published in Journal of Financial Stability 25:37-46 |
Publisher Policy: | Reproduced in accordance with the copyright policy of the publisher |
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