Industry Competition, Market Shares, and the Long-Run Performance of SEO Firms

IF 2.5 Q2 ECONOMICS
Weiju Young, Junming Hsu, Peng-Yu Gao, Tzu-Ju Yang
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引用次数: 0

Abstract

This study investigates the impacts of industry competition and market share on the long-run performance of firms conducting seasoned equity offerings (SEOs). These two factors are related to the “market dominance” and “expense preference” hypotheses, which suggest that dominant (low-competitive and high-market-share) firms would perform well after SEOs if they can bring their market advantages into full play and poorly if managers intend to hold more funds to expend, respectively. The results show that dominant SEO firms tend to outperform their matching firms and challenging (high-competitive and low-market-share) firms, supporting the market dominance hypothesis. This finding implies that firms with advantages in the product market can increase their competence via SEOs due to their ample resources. We contribute to the literature by showing that business risk can affect the performance following financing activities, a result that can help long-run investors select more promising SEO stocks.

行业竞争、市场份额与SEO公司的长期绩效
本研究探讨了行业竞争和市场份额对进行股权发行(seo)的公司长期绩效的影响。这两个因素与“市场支配”和“费用偏好”假设有关,这表明,如果主导(低竞争力和高市场份额)公司能够充分发挥其市场优势,那么它们在seo之后会表现良好,如果管理者打算持有更多的资金用于支出,那么它们就会表现不佳。结果显示,占主导地位的搜索引擎优化公司倾向于优于其匹配公司和具有挑战性(高竞争力和低市场份额)的公司,支持市场主导假说。这一发现意味着在产品市场上具有优势的公司可以通过seo提高他们的竞争力,因为他们有充足的资源。我们通过显示商业风险可以影响融资活动后的绩效来贡献文献,这一结果可以帮助长期投资者选择更有前景的SEO股票。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
3.00
自引率
0.00%
发文量
34
期刊介绍: The current remarkable growth in the Asia-Pacific financial markets is certain to continue. These markets are expected to play a further important role in the world capital markets for investment and risk management. In accordance with this development, Asia-Pacific Financial Markets (formerly Financial Engineering and the Japanese Markets), the official journal of the Japanese Association of Financial Econometrics and Engineering (JAFEE), is expected to provide an international forum for researchers and practitioners in academia, industry, and government, who engage in empirical and/or theoretical research into the financial markets. We invite submission of quality papers on all aspects of finance and financial engineering. Here we interpret the term ''financial engineering'' broadly enough to cover such topics as financial time series, portfolio analysis, global asset allocation, trading strategy for investment, optimization methods, macro monetary economic analysis and pricing models for various financial assets including derivatives We stress that purely theoretical papers, as well as empirical studies that use Asia-Pacific market data, are welcome. Officially cited as: Asia-Pac Financ Markets
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