Cross-country bank regulation 13 October 2018.pdf (496.24 kB)
The effects of bank regulation stringency on seasoned equity offering announcements
We study the relation between bank regulation stringency and announcement effects of seasoned equity offerings across 21 countries. Under a low to moderate bank regulation environment, the market reacts more positively to the bank SEO announcements for an increase in the level of bank regulation. However, the bank SEO announcement effects become more negative if the bank regulation becomes too stringent. This inverted U-shaped relation is robust after we use the exogenous cross-country and cross-year variation in the timing of the Basel II adoption as an instrument to assess the causal impact of bank regulation on SEO announcement effects. Bank regulation has no significant impact of SEO announcement effects if the equity offering is involuntary.
History
School
- Business and Economics
Department
- Business
Published in
Journal of International Money and FinanceVolume
91Pages
71 - 85Publisher
Elsevier BVVersion
- AM (Accepted Manuscript)
Rights holder
© Elsevier LtdPublisher statement
This paper was accepted for publication in the journal Journal of International Money and Finance and the definitive published version is available at https://doi.org/10.1016/j.jimonfin.2018.11.001.Publication date
2018-11-03Copyright date
2018ISSN
0261-5606Publisher version
Language
- en
Depositor
Prof Hong Liu. Deposit date: 4 February 2020Usage metrics
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