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Long-term Operating Performance of the SEO Firms for the Capital Expenditures Purpose: Evidence from the Free Cash Flow Theory
Journal of Financial Studies
View Archive Info| Field | Value | |
| Title |
Long-term Operating Performance of the SEO Firms for the Capital Expenditures Purpose: Evidence from the Free Cash Flow Theory
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| Creator |
Wen-Yi Lin
Pei-Shan Tsai |
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| Subject |
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| Description |
The main purpose of this study is to examine whether the long-term operating performance of the seasoned equity offerings (SEOs) company for the capital expenditure purpose can be explained by Jensen's (1986) free cash flow theory. The empirical evidences show that the firms' operating performance does not significantly deteriorate after SEOs and contrast with the conventional SEOs firms' empirical results. However, we find when a SEO-issuing company for the purpose of capital expenditure holds excess free cash flow, its long-term operating performance would be declined. Overall, our findings support Jensen's (1986) free cash flow hypothesis. Key words:Seasoned equity offerings (SEOs), capital expenditures, free cash flow, operating performance. |
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| Publisher |
Journal of Financial Studies
財務金èžå¸åˆŠ |
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| Contributor |
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| Date |
2011-06-30
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| Type |
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| Format |
application/pdf
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| Identifier |
http://www.jfs.org.tw/index.php/jfs/article/view/2011197
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| Source |
Journal of Financial Studies; Vol 19, No 2 (2011); 1
財務金èžå¸åˆŠ; Vol 19, No 2 (2011); 1 |
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