Table 6 Matching-firm adjusted returns...

Table 6

Matching-firm adjusted returns by SEO type and horizon

SEO type	Number of SEOs	Return period	N	Mean	Median	Mean Diff. (t-stat)	Median Diff. (Z-score)
Panel A: Total sample
Rights	1,090	12 months	994	−24.4%	−22.8%
		24 months		−46.6%	−33.7%
		36 months		−62.2%	−39.9%
Public	967	12 months	818	−44.7%	−43.4%	20.2%*** (4.64)	20.6%*** (5.70)
		24 months		−61.4%	−55.3%	14.8%** (2.24)	21.6%*** (4.05)
		36 months		−80.1%	−52.1%	17.8%** (2.28)	12.2%*** (2.94)
Panel B: KOSPI
Rights	277	12 months	249	−10.4%	−18.0%
		24 months		−34.3%	−31.5%
		36 months		−52.6%	−29.1%
Public	153	12 months	140	−48.2%	−46.9%	37.8%*** (3.68)	28.9%*** (3.74)
		24 months		−64.6%	−67.1%	30.2%** (1.97)	35.6%*** (3.02)
		36 months		−70.2%	−64.9%	17.6% (0.98)	35.9%** (2.21)
Panel C: KOSDAQ
Rights	814	12 months	745	−29.3%	−26.4%
		24 months		−50.7%	−33.9%
		36 months		−65.4%	−42.3%
Public	813	12 months	678	−44.0%	−43.3%	14.7%*** (3.07)	16.9%*** (4.34)
		24 months		−60.7%	−52.8%	10.0% (1.37)	18.8%*** (2.87)
		36 months		−82.1%	−48.9%	16.7%* (1.91)	6.6%** (1.98)

SEO type	Number of SEOs	Return period	N	Mean	Median	Mean Diff. (t-stat)	Median Diff. (Z-score)
Panel A: Total sample
Rights	1,090	12 months	994	−24.4%	−22.8%
		24 months		−46.6%	−33.7%
		36 months		−62.2%	−39.9%
Public	967	12 months	818	−44.7%	−43.4%	20.2%*** (4.64)	20.6%*** (5.70)
		24 months		−61.4%	−55.3%	14.8%** (2.24)	21.6%*** (4.05)
		36 months		−80.1%	−52.1%	17.8%** (2.28)	12.2%*** (2.94)
Panel B: KOSPI
Rights	277	12 months	249	−10.4%	−18.0%
		24 months		−34.3%	−31.5%
		36 months		−52.6%	−29.1%
Public	153	12 months	140	−48.2%	−46.9%	37.8%*** (3.68)	28.9%*** (3.74)
		24 months		−64.6%	−67.1%	30.2%** (1.97)	35.6%*** (3.02)
		36 months		−70.2%	−64.9%	17.6% (0.98)	35.9%** (2.21)
Panel C: KOSDAQ
Rights	814	12 months	745	−29.3%	−26.4%
		24 months		−50.7%	−33.9%
		36 months		−65.4%	−42.3%
Public	813	12 months	678	−44.0%	−43.3%	14.7%*** (3.07)	16.9%*** (4.34)
		24 months		−60.7%	−52.8%	10.0% (1.37)	18.8%*** (2.87)
		36 months		−82.1%	−48.9%	16.7%* (1.91)	6.6%** (1.98)

Note(s): *, ** and *** indicate the statistical significance level at 10%, 5% and 1%. This table reports the matching-firm adjusted returns of SEO firms by offering type (Rights versus Public). Matching firms are selected following Lyon et al. (1999) as a firm that has the closest B/M ratio of equity with market equity capitalization of 70–130% of the SEO firm in the issuance year. The matching firm belongs to the same industry as the SEO firm as classified by 1-digit KSIC (Korea Standard Industry Code). Panel A presents mean and median tests of return differences for the whole sample, Panel B for KOSPI firms and Panel C for KOSDAQ firms. The data cover SEOs from September 2000 to December 2015

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