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Updated: Jun 28, 2025

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Published on: September 28, 2022
Tough times for seasoned equity offerings: performance during the COVID pandemic
Marc Zenzius1, Christian Flore1, Dirk Schiereck1
1Department of Business Administration, Economics and Law, Technische Universität Darmstadt, Hochschulstr. 1, 64289 Darmstadt, Germany.
Abstract:
This study analyzes the wealth effects of SEO announcements in the US during the COVID-19 pandemic and its main determinants. We find significantly negative abnormal returns of - 8.6%. This provides persuasive evidence that capital markets reacted particularly negative during this period, reflecting higher degrees of uncertainty. We furthermore find that larger firms experience a better SEO performance and that COVID-19 related biotech & healthcare firms react particularly negative. This effect is more negative the lower the company valuation beforehand.
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