Do share offerings increase payouts?

Hichem Boulifa, Konari Uchida*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


This paper investigates the effects of pure secondary share offerings, which decrease ownership concentration without raising funds, to highlight the corporate governance effect of equity offerings. We find that firms conducting secondary offerings significantly increase dividend payouts after the transaction. Although the announcement of secondary offerings receives negative stock price reactions in the short run, we witness a reversal and positive performance in the long term. While previous studies commonly suggest equity offerings cause negative stock returns, our results reveal that these transactions make managers care about minority shareholder wealth by unwinding ownership concentration.

Original languageEnglish
Article number102347
JournalPacific Basin Finance Journal
Publication statusPublished - 2024 Jun


  • Corporate governance
  • Minority shareholder wealth
  • Ownership concentration
  • Payouts
  • Secondary share offering

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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