Influence of media coverage and sentiment on seasoned equity offerings

Sun, Ji and Zhou, Yi and Wang, Jiaguo and Guo, Jie (Michael) (2020) Influence of media coverage and sentiment on seasoned equity offerings. Accounting and Finance, 60 (S1). pp. 557-585. ISSN 0810-5391

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Abstract

This article examines the role of media in seasoned equity offerings (SEOs) price and market reactions on SEO announcements. Using a sample of SEO deals in UK, we find that media coverage is significantly and negatively related to SEO price discounts and market returns around SEO announcements. Moreover, we document that more pessimistic media sentiment predicts larger SEO price discounts and more negative market reactions to SEO announcements. In summary, both media coverage and media sentiment influence investor decisions in SEOs, but through different mechanisms.

Item Type:
Journal Article
Journal or Publication Title:
Accounting and Finance
Additional Information:
This is the peer reviewed version of the following article: Sun, J. , Zhou, Y. , Wang, J. (. and Guo, J. (. (2018), Influence of media coverage and sentiment on seasoned equity offerings. Account Finance. . doi:10.1111/acfi.12334 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/acfi.12334/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/2000/2001
Subjects:
ID Code:
128377
Deposited By:
Deposited On:
18 Oct 2018 12:06
Refereed?:
Yes
Published?:
Published
Last Modified:
29 Sep 2020 04:29