Research on the announcement effect of second equity offerings?——An quantitative analysis of Chinese infrastructure companies

Many issues have emerged currently regarding refinancing as a main financing source of Chinese listed companies. This study aims to identify key factors that influence the announcement effect second equity offerings (SEOs) with 110 infrastructure companies on A-share stock market. By building multivariate regression model, this analyzed from perspective company’s fundamentals and characteristics refinancing, found same impact effect. Return equity, net profit margin debt-to-equity ratio are all positively related accumulated abnormal return. The market pays more attention profitability when talking about SEOs. As dilute relative issuing scale little but does concern purpose fund-raising.