Title:
LONG RUN OUTPERFORMANCE OF STOCK RETURN FOLLOWING SEASONED EQUITY OFFERINGS: EVIDENCE FROM VIETNAM STOCK MARKET

Authors:
Quang Thu Luu, Tran Hoang Vu, Viet Nam

Abstract:

The most recent studies related to firm performance after SEO within 5 years timeframe. However, longer timeframe is needed to concern related to investors loyalty invest in the firm. The performance of firm following issuing equity and of market index are compared in this study by using Cumulative Abnormal Return (CAR) method to evaluate firm performance after SEO event date. The result of this study is inconsistent with literature. The empirical results show that firm performance after SEOs tend to outperform over five-year period. The return comparing with different year, also, points out volatility is slightly decline through 5 years period. To measure the performance of firm after SEOs, the cumulative abnormal return of issuing firm is considered under yearly and monthly cumulative abnormal return base, compared with yearly and monthly cumulative return of market index, respectively.