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Sabri Boubaker and Hatem Mansali
''The long-run performance of seasoned stock-warrant unit offerings''
( 2022, Vol. 42 No.2 )
This paper investigates the long-run performance of unit offering firms in France. Studying the period 1991–2020, the empirical results show a low subsequent long-run stock performance and post-issue decline in operating performance over 3- and 5-year periods, suggesting that unit offering firms underperform in the long-run. Additional analyses on the intended use of the proceeds show that the underperformance in the long-run of unit seasoned offerings does not depend on the intended use of the proceeds, consistent with the rationale that unit offering firms were overvalued at issuing and experienced a pre-issuance run-up. Overall, the results are in accordance with the behavioral explanation.
Keywords: Unit offerings; Warrants; Seasoned equity offering; Long-term performance
JEL: G3 - Corporate Finance and Governance: General
Manuscript Received : Dec 02 2021 Manuscript Accepted : Jun 30 2022

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