CAR associated with SEO share lockups: Real or illusionary?

Beng Soon Chong*, Zhenbin Liu

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review

2 Citations (Scopus)


This paper examines the cumulative abnormal return (CAR) associated with both the expiration and initiation of SEO share lockups. First, we find that the average CAR around the expiration of SEO share lockups is significantly negative, but this result is mainly attributed to inappropriate benchmarking of the CAR. Second, there is also, on average, a significant negative CAR at the initiation of SEO share lockups, but the negative CAR is a temporary phenomenon that reverses itself within a short period of time. Overall, our findings do not support the downward sloping demand curve hypothesis on the lockup expiration effect.
Original languageEnglish
Pages (from-to)513–541
Number of pages29
JournalReview of Quantitative Finance and Accounting
Early online date26 Mar 2015
Publication statusPublished - Oct 2016

Scopus Subject Areas

  • Accounting
  • Business, Management and Accounting(all)

User-Defined Keywords

  • SEO
  • Lockup expiration
  • Cumulative abnormal return
  • Efficient market
  • Downward sloping demand curve
  • Temporary price pressure


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