TY - JOUR
T1 - CAR associated with SEO share lockups
T2 - Real or illusionary?
AU - Chong, Beng Soon
AU - Liu, Zhenbin
N1 - Publisher copyright:
© 2015, Springer Science Business Media New York
PY - 2016/10
Y1 - 2016/10
N2 - 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.
AB - 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.
KW - SEO
KW - Lockup expiration
KW - Cumulative abnormal return
KW - Efficient market
KW - Downward sloping demand curve
KW - Temporary price pressure
UR - https://www.scopus.com/inward/record.uri?eid=2-s2.0-84925652332&doi=10.1007%2fs11156-015-0510-8&partnerID=40&md5=cefa3f476be6b6906aad1758effd542b
U2 - 10.1007/s11156-015-0510-8
DO - 10.1007/s11156-015-0510-8
M3 - Journal article
SN - 0924-865X
VL - 47
SP - 513
EP - 541
JO - Review of Quantitative Finance and Accounting
JF - Review of Quantitative Finance and Accounting
ER -