The Characteristics of Hot Market Seasoned Equity Issuers
Halil D. Kaya

Abstract
In this study, I examine the characteristics of U.S. firms that come to the Seasoned Equity Offering (i.e. SEO) market in HOT versus COLD equity markets. HOT markets are defined as the top twenty percent of the months in terms of the de-trended number of equity offerings. I find that the HOT market SEO firms generally have higher market-to-book ratios compared to the COLD market firms. Also, in HOT markets, the issuers tend to be smaller firms with fewer tangible assets. With regard to profitability and pre-issue leverage, my results show that there is no significant difference between HOT and COLD market firms.

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