CAR associated with SEO share lockups: Real or illusionary?

Beng Soon Chong; Zhenbin Liu

doi:10.1007/s11156-015-0510-8

CAR associated with SEO share lockups: Real or illusionary?

Beng Soon Chong^*
, Zhenbin Liu

^*Corresponding author for this work

Department of Accountancy, Economics and Finance

Research output: Contribution to journal › Journal article › peer-review

2 Citations (Scopus)

Abstract

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 language	English
Pages (from-to)	513–541
Number of pages	29
Journal	Review of Quantitative Finance and Accounting
Volume	47
Early online date	26 Mar 2015
DOIs	https://doi.org/10.1007/s11156-015-0510-8
Publication status	Published - Oct 2016

User-Defined Keywords

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

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10.1007/s11156-015-0510-8

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@article{d33ee4d93f0644068877a5f56d9754fc,

title = "CAR associated with SEO share lockups: Real or illusionary?",

abstract = "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.",

keywords = "SEO, Lockup expiration, Cumulative abnormal return, Efficient market, Downward sloping demand curve, Temporary price pressure",

author = "Chong, \{Beng Soon\} and Zhenbin Liu",

note = "Publisher copyright: {\textcopyright} 2015, Springer Science Business Media New York",

year = "2016",

month = oct,

doi = "10.1007/s11156-015-0510-8",

language = "English",

volume = "47",

pages = "513–541",

journal = "Review of Quantitative Finance and Accounting",

issn = "0924-865X",

publisher = "Springer New York",

}

TY - JOUR

T1 - CAR associated with SEO share lockups

T2 - Real or illusionary?

AU - Chong, Beng Soon

AU - Liu, Zhenbin

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/pages/publications/84925652332

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 -

CAR associated with SEO share lockups: Real or illusionary?

Abstract

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