Relation of Size, Earning Management and Market Timing to the Firm Performance in Seasoned Equity Offerings

Some empirical evidence indicate that firms during the period of seasoned equity offerings take necessary actions of earning management and market timing and also, applying each of these approaches is affected by their size. The aim of this study is to investigate the relation of size, earning management and market timing to firm performance during the period of seasoned equity offerings. The sample of this study includes 63 firms listed in Tehran Stock Exchange that have experienced seasoned equity offerings from 2001 to 2013. The test of comparing two population means and panel data regression method have been used in order to investigate the relation of size, earning management and market timing to stock performance. Research findings indicate that earning management has a positive significant influence on short term performance, while it has a negative influence on one-year performance; however, market timing weaken the short term, one, two and three-year performances. Also, it cannot be claimed that a firm's decision of earning management and market timing during the period of seasoned equity offerings is affected by its size.