This study investigates the impacts of industry competition and market share on the long-run performance of firms conducting seasoned equity offerings (SEOs). These two factors are related to the “market dominance” and “expense preference” hypotheses, which suggest that dominant (low-competitive and high-market-share) firms would perform well after SEOs if they can bring their market advantages into full play and poorly if managers intend to hold more funds to expend, respectively. The results show that dominant SEO firms tend to outperform their matching firms and challenging (high-competitive and low-market-share) firms, supporting the market dominance hypothesis. This finding implies that firms with advantages in the product market can increase their competence via SEOs due to their ample resources. We contribute to the literature by showing that business risk can affect the performance following financing activities, a result that can help long-run investors select more promising SEO stocks.

本研究调查了行业竞争和市场份额对进行经验丰富的股票发行 (SEO) 的公司的长期绩效的影响。这两个因素与“市场支配地位”和“费用偏好”假设有关，这表明占主导地位的（低竞争和高市场份额）公司如果能够充分发挥其市场优势，将在 SEO 后表现良好，如果经理们打算分别持有更多资金进行支出，则效果不佳。结果表明，占主导地位的 SEO 公司往往优于其匹配公司和具有挑战性（高竞争力和低市场份额）的公司，支持市场支配假设。这一发现表明，在产品市场上具有优势的公司可以通过 SEO 提高他们的竞争力，因为他们拥有充足的资源。