Bank regulation, financial crisis, and the announcement effects of seasoned equity offerings of US commercial banks

Hui Li, Frank Hong Liu, Antonios Siganos, Mingming Zhou

Research output: Contribution to journalArticle

6 Citations (Scopus)


This paper studies the differences in the announcement effects of seasoned equity offerings (SEOs) of commercial banks and non-banks, and explores the influence of bank regulation and the financial crisis on such differences. We find that abnormal stock returns on SEO announcements for US commercial banks are significantly higher than those of non-banks, consistent with the hypothesis that bank regulations reduce the likelihood that bank SEOs signal overpriced equity. The propensity score matching-based difference-in-difference analysis indicates that the differences in stock returns between banks and non-banks decreased during the 2007–2009 financial crisis period and increased after the passage of the Dodd-Frank Act in 2010.
Original languageEnglish
Pages (from-to)37-46
Number of pages10
JournalJournal of Financial Stability
Early online date23 Jun 2016
Publication statusPublished - Aug 2016



  • Seasoned equity offerings (SEOs)
  • Announcement stock returns
  • Banks
  • Bank regulation
  • Financial crisis

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