Table 5 ROA and sales/assets regressions...

Table 5

ROA and sales/assets regressions

Panel A: ROA
	ROA[t,t+3]					ROA(t+1)	ROA(t+2)	ROA(t+3)
Rights	0.098*** (5.04)	0.096*** (4.84)	0.098*** (5.29)	0.096*** (5.07)	0.057*** (2.78)	0.030*** (2.82)	0.016** (2.30)	0.024* (1.86)
MB		0.003 (0.21)		0.006 (0.38)	0.007 (0.50)	0.008 (1.08)	0.003 (0.42)	0.005 (0.68)
Investment			−0.040 (−0.96)	−0.044 (−0.90)	0.016 (0.33)	0.009 (0.19)	−0.034* (−1.69)	0.010 (0.69)
IssueAmount					0.005 (0.62)	−0.001 (−0.12)	0.006 (1.36)	0.000 (0.09)
FirmSize					0.021** (1.99)	0.014*** (2.85)	0.004 (0.73)	0.013*** (2.62)
ROA(t-1)					0.315*** (4.58)	0.235*** (4.28)	0.125*** (4.16)	0.063 (1.63)
Constant	−0.265*** (−30.52)	−0.264*** (−28.68)	−0.262*** (−35.03)	−0.261*** (−33.19)	−0.851*** (−5.08)	−0.433*** (−5.19)	−0.320*** (−2.84)	−0.416*** (−3.66)
Adj. R-Sq	0.105	0.105	0.109	0.109	0.182	0.154	0.069	0.046
N	1,225	1,221	1,221	1,217	1,217	1,244	1,232	1,219

Panel A: ROA
	ROA[t,t+3]					ROA(t+1)	ROA(t+2)	ROA(t+3)
Rights	0.098*** (5.04)	0.096*** (4.84)	0.098*** (5.29)	0.096*** (5.07)	0.057*** (2.78)	0.030*** (2.82)	0.016** (2.30)	0.024* (1.86)
MB		0.003 (0.21)		0.006 (0.38)	0.007 (0.50)	0.008 (1.08)	0.003 (0.42)	0.005 (0.68)
Investment			−0.040 (−0.96)	−0.044 (−0.90)	0.016 (0.33)	0.009 (0.19)	−0.034* (−1.69)	0.010 (0.69)
IssueAmount					0.005 (0.62)	−0.001 (−0.12)	0.006 (1.36)	0.000 (0.09)
FirmSize					0.021** (1.99)	0.014*** (2.85)	0.004 (0.73)	0.013*** (2.62)
ROA(t-1)					0.315*** (4.58)	0.235*** (4.28)	0.125*** (4.16)	0.063 (1.63)
Constant	−0.265*** (−30.52)	−0.264*** (−28.68)	−0.262*** (−35.03)	−0.261*** (−33.19)	−0.851*** (−5.08)	−0.433*** (−5.19)	−0.320*** (−2.84)	−0.416*** (−3.66)
Adj. R-Sq	0.105	0.105	0.109	0.109	0.182	0.154	0.069	0.046
N	1,225	1,221	1,221	1,217	1,217	1,244	1,232	1,219

Panel B: Sales/Assets
	Sales/Assets[t,t+3]					S/A(t+1)	S/A(t+2)	S/A(t+3)
Rights	0.281** (2.23)	0.300** (2.45)	0.279** (2.31)	0.299** (2.54)	0.376*** (3.33)	0.150*** (4.23)	0.126*** (3.89)	0.104** (2.01)
MB		−0.228*** (−3.92)		−0.217*** (−3.22)	−0.186** (−2.56)	−0.053*** (−2.58)	−0.053*** (−2.68)	−0.082** (−2.30)
Investment			−0.349** (−1.97)	−0.218 (−1.06)	−0.076 (−0.43)	−0.039 (−0.53)	−0.009 (−0.14)	−0.052 (−0.97)
IssueAmount					−0.088* (−1.95)	−0.043*** (−2.92)	−0.024 (−1.40)	−0.009 (−0.44)
FirmSize					0.119* (1.86)	0.050** (2.19)	0.034* (1.94)	0.030 (1.45)
Constant	2.229*** (34.64)	2.239*** (36.56)	2.252*** (44.07)	2.249*** (46.20)	1.217 (1.04)	0.433 (0.82)	0.411 (1.22)	0.235 (0.54)
Adj. R-Sq	0.154	0.165	0.152	0.162	0.165	0.134	0.139	0.143
N	1,224	1,220	1,220	1,216	1,216	1,243	1,232	1,219

Panel B: Sales/Assets
	Sales/Assets[t,t+3]					S/A(t+1)	S/A(t+2)	S/A(t+3)
Rights	0.281** (2.23)	0.300** (2.45)	0.279** (2.31)	0.299** (2.54)	0.376*** (3.33)	0.150*** (4.23)	0.126*** (3.89)	0.104** (2.01)
MB		−0.228*** (−3.92)		−0.217*** (−3.22)	−0.186** (−2.56)	−0.053*** (−2.58)	−0.053*** (−2.68)	−0.082** (−2.30)
Investment			−0.349** (−1.97)	−0.218 (−1.06)	−0.076 (−0.43)	−0.039 (−0.53)	−0.009 (−0.14)	−0.052 (−0.97)
IssueAmount					−0.088* (−1.95)	−0.043*** (−2.92)	−0.024 (−1.40)	−0.009 (−0.44)
FirmSize					0.119* (1.86)	0.050** (2.19)	0.034* (1.94)	0.030 (1.45)
Constant	2.229*** (34.64)	2.239*** (36.56)	2.252*** (44.07)	2.249*** (46.20)	1.217 (1.04)	0.433 (0.82)	0.411 (1.22)	0.235 (0.54)
Adj. R-Sq	0.154	0.165	0.152	0.162	0.165	0.134	0.139	0.143
N	1,224	1,220	1,220	1,216	1,216	1,243	1,232	1,219

Note(s): *, ** and *** indicate the statistical significance level at 10%, 5% and 1%. This table reports regression results of industry-median adjusted ROA (operating profit over total assets) and Sales/Assets (sales over total assets) during year [t,t+3] with regard to the seasoned equity offering year. Rights is an indicator variable that equals 1 if the SEO type is a rights offering, and 0 otherwise. MB is market-to-book ratio of assets, Investment is the sum of R&D and cash flow from investment activities scaled by total assets, IssueAmount is the log of SEO proceeds, and FirmSize is the log of total assets. MB and Investment are adjusted for industry medians, where industry is classified by 2-digit KSIC (Korea Standard Industry Code). The data covers SEOs from September 2000 to December 2015. Industry and year fixed effects are included, and double-clustered t-statistics are reported beneath the coefficients in parentheses

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