Policy uncertainty and seasoned equity offerings methods

Man Dang, Premkanth Puwanenthiren, Hong An Thai, Mieszko Mazur, Edward Jones, Xuan Vin Vo

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)
6 Downloads (Pure)


Based on a sample of U.S. seasoned equity offering (SEO) during the period 2002–2017, we examine how the choice of equity issuance method changes in response to policy uncertainty. We find that firms subject to high policy uncertainty are less likely to use accelerated offerings rather than other types of traditional seasoned equity offerings. Our results are robust to alternative variable specifications, propensity score matching method, IV approach, and the inclusion of additional controls. Also, the effect of policy uncertainty on accelerated offering decision is weaker for firms with better information environment, earnings quality, and governance structures. Further, policy uncertainty increases the cost of funds and lowers long-run abnormal returns after SEOs for firms subject to high levels of policy uncertainty.
Original languageEnglish
Article number101830
JournalInternational Review of Financial Analysis
Early online date25 Jun 2021
Publication statusPublished - Oct 2021


  • Multinomial logistic regression
  • Policy uncertainty
  • Propensity score matching, IV approach
  • Seasoned equity offerings

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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