MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY
DINH THI THU HA
SEASONED EQUITY OFFERINGS
EVIDENCE IN VIETNAMESE STOCK MARKET
DOCTORAL THESIS
HoChiMinh City – 2016
MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY
DINH THI THU HA
SEASONED EQUITY OFFERINGS
EVIDENCE IN VIETNAMESE STOCK MARKET
Specialization: Finance – Banking
Specialization code: 62340201
DOCTORAL THESIS
SUPERVISOR:
Asso.Prof. HO VIET TIEN
Asso.Prof. BUI KIM YEN
HoChiMinh City – 2016
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TABLE OF CONTENTS
List of Abbreviations
List of Tables
List of Figures
Chapter 1: Introduction ............................................................................... 1
1.1 Research motivation ............................................................................ 1
1.2 Research objectives ............................................................................. 6
1.3 Research questions .............................................................................. 7
1.4 Research scope .................................................................................... 8
1.5 Research methods ............................................................................... 8
1.6 Research contributions ........................................................................ 10
1.7 Structure of the study .......................................................................... 11
1.8 A summarize of thesis findings ........................................................... 13
Chapter 2: Literature review and Hypotheses development....................... 16
2.1 Introduction .......................................................................................... 16
2.2 Theoretical literature on SEOs .............................................................. 16
2.2.1 Trade-off Theory ...................................................................... 16
2.2.2 Growth Opportunities Theory ................................................... 18
2.2.3 Market timing theory ................................................................ 20
2.2.4 Agency problem theory ............................................................ 23
2.2.5 Efficient Market Hypothesis ..................................................... 24
.................................................................................................
2.3 Literature review on SEOs empirical studies ........................................ 27
2.3.1 Determinants of company’s SEOs motivation .......................... 27
2.3.1.1 Trade-off theory................................................................ 27
2.3.1.2 Growth Opportunities Theory ........................................... 28
2.3.1.3 Market timing theory ........................................................ 30
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2.3.1.4 Agency problem theory .................................................... 32
2.3.2 Market’s reactions to company’s SEOs .................................... 33
2.3.2.1 Growth Opportunities Theory ........................................... 33
2.3.2.2 Market timing theory ........................................................ 35
2.3.2.3 Efficiency market hypothesis ............................................ 37
2.4 Hypotheses building and variable measurements ................................. 40
2.4.1 Determinants of company’s SEOs motivation .......................... 40
2.4.2 Market’s reaction to company’s SEOs ...................................... 43
2.5 Conclusion .......................................................................................... 45
Chapter 3: Data and methodology ............................................................... 47
3.1 Data ................................................................................................... 47
3.2 Methodology ..................................................................................... 51
3.2.1 Determinants of company’s SEOs motivation .......................... 51
3.2.2 Market reaction to company’s SEOs......................................... 56
3.2.2.1 Event study .................................................................. 56
3.2.2.2 Determinants of market reaction to company’s SEOs ... 64
Chapter 4 Determinants of company’s SEOs motivation............................ 71
4.1 Statistics summary ............................................................................. 71
4.1.1 Distribution of SEOs over the sample period (2007-2013)........ 71
4.1.2 SEOs probability description .................................................... 73
4.2 Determinants of company’s SEOs motivation .................................... 79
4.3 Determinants of company’s SEOs motivation by issuance method .... 85
4.4 Conclusion ......................................................................................... 91
Chapter 5 Market’s reaction to company’s SEOs ....................................... 92
5.1 Data description ................................................................................... 92
5.2 Market reaction to company’s SEOs ..................................................... 93
5.2.1 Market reaction around announcement day ................................ 93
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5.2.2 Market reaction around ex-right day .......................................... 102
5.3 The relation between announcement day and ex-right day .................. 111
5.4 Determinants of market reaction to company’s SEOs .......................... 112
5.4.1 Determinants of market reaction around announcement day ...... 112
5.4.2 Determinants of market reaction around ex-right day .............. 117
5.5 Conclusion .......................................................................................... 122
Chapter 6 Conclusion and Suggestion......................................................... 124
6.1 Conclusion .......................................................................................... 124
6.2 Suggestion for stakeholders................................................................ 126
List of publications
References
Appendices
