We document that diversified firms experience less negative seasoned equity offering (SEO) announcement returns than focused firms. The relatively better SEO announcement stock performance of diversified firms is more pronounced among issuers with operations across unrelated industries. Furthermore, following the SEO announcement, diversified firms’ stock returns exhibit post-announcement drift, suggesting a delay in information assimilation. Our findings support the information complexity hypothesis that a more sophisticated organizational form leads to a higher degree of complexity in information processing by investors, which in turn causes a delay in the impounding of information into stock prices.

我们记录了多元化公司的负面经验性股票发行 (SEO) 公告回报比专注公司少。多元化公司相对较好的 SEO 公告股票表现在跨行业运营的发行人中更为明显。此外，在 SEO 公告之后，多元化公司的股票回报表现出公告后的漂移，表明信息同化的延迟。我们的研究结果支持信息复杂性假设，即更复杂的组织形式导致投资者信息处理的复杂程度更高，这反过来又会延迟将信息存入股票价格。