This paper provides evidence that some seasoned equity offerings are motivated by public information. We test this channel in the supply chain setting, where supplier managers are more attentive than outside investors to customer news. We find that supplier firms are more likely to issue seasoned equity when their customer firms have negative earnings surprises. The results are mitigated when there is common scrutiny on the customer-supplier firm pairs by outside investors and analysts. Furthermore, long-run stock market performance appears to be worse for firms that issue seasoned equity following the negative earnings surprise of their customer firms.

We find that investors react more favorably to corporate announcements of share repurchases, SEOs, earnings, dividend changes, and acquisitions if the announcement is made immediately prior to or on holidays. These announcements are associated with more positive reactions for favorable events and less negative reactions for unfavorable events. This effect is robust to controls for market conditions and a selection bias, is accompanied by subsequent reversals, and is present in several international markets. Our findings suggest that predictable individual mood changes can cause biases in market reactions to firm-specific news.

We find that the level of short interest in a firm's stock significantly predicts future seasoned equity offers (SEOs). The probability of an SEO announcement increases by 34% (decreases by 49%) for firms in the top (bottom) quintile of short interest. We identify a causal impact of short interest on SEO issuance using a novel instrument for short interest based on future litigation filings in close geographical proximity to hedge fund centers. Our findings suggest that corporate decisions can be triggered by the aggregate trading activity of sophisticated outside investors.

本文立足于承销商的角度，首次从“关系”视角实证研究了投行与上市公司之间 的“关系”在投行竞争公司再融资（SEO）承销业务中的影响，并进而深入探讨了“关系” 与“声誉”机制在影响SEO 承销竞争方面的相互替代作用。结果发现，投行与上市公司“关 系”越紧密，即如果该投行是公司IPO 的承销商，或者在公司IPO 时的承销份额越高，或 者持有上市公司的股权，那么其越有可能获得公司SEO 的承销业务；然而，“声誉”会削弱 “关系”的影响，只有在投行声誉较弱的情况下，“关系”才能发挥作用。本文研究不仅提 供了在中国制度环境下“关系”在微观层面发挥作用的证据，从而丰富了投行行为的研究内 容，而且开拓了“关系”与“声誉”机制交互研究的新领域。

This paper detects whether seasoned equity offering (SEO) firms manage earnings in the year before a planed issue and the inducement factors of earning management. We select 106 SEO firms during 1999 to 2001 as test sample and another 106 non-SEO firms matched at calendar year, Industry and cash from operation as control sample. Using 3 three test methods, we find that firms contemplating SEO in the following year do manage earnings particularly when their relative performances are poor. And we also find firm size, CFOs and debt ratios are important inducement factors of earning management.