Influence of Media Coverage and Sentiment on Seasoned Equity Offerings

Sun, Ji; Zhou, Yi; Wang, Jiaguo George; Guo, Jie Michael

doi:10.1111/acfi.12334

Influence of Media Coverage and Sentiment on Seasoned Equity Offerings

Sun, Ji; Zhou, Yi; Wang, Jiaguo George; Guo, Jie Michael

Authors

Ji Sun

Yi Zhou

Jiaguo George Wang

Professor Michael Guo jie.guo@durham.ac.uk
Professor

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.

Citation

Sun, J., Zhou, Y., Wang, J. G., & Guo, J. M. (2020). Influence of Media Coverage and Sentiment on Seasoned Equity Offerings. Accounting and Finance, 60(S1), 557-585. https://doi.org/10.1111/acfi.12334

Journal Article Type	Article
Acceptance Date	Jan 8, 2018
Online Publication Date	Feb 16, 2018
Publication Date	Apr 30, 2020
Deposit Date	Jan 8, 2018
Publicly Available Date	Feb 16, 2020
Journal	Accounting and Finance
Print ISSN	0810-5391
Electronic ISSN	1467-629X
Publisher	Wiley
Peer Reviewed	Peer Reviewed
Volume	60
Issue	S1
Pages	557-585
DOI	https://doi.org/10.1111/acfi.12334
Public URL	https://durham-repository.worktribe.com/output/1341354

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Copyright Statement
This is the accepted version of the following article: Sun, Ji, Zhou, Yi, Wang, Jiaguo George & Guo, Jie Michael (2020). Influence of Media Coverage and Sentiment on Seasoned Equity Offerings. Accounting and Finance 60(S1): 557-585 which has been published in final form at https://doi.org/10.1111/acfi.12334. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.