Time-series of SEO filings and firms reaching a new 12-month high price (IMAGE)
Caption
From this picture, we can see that the fluctuation ranges of co-movement between SEO fillings and firms with new highs in 2015 and 2016 are smaller than those of 2005–2007. This may be because in 2015, the stock market experienced a bull market, and investor sentiment was relatively high. At that time, fund accounts and securities firms formed with bank capital allocation became dominant in the private placement market, bringing additional stock issuances. To further explore this correlation, we conduct time-series regressions of the number of companies on the aggregate number of issuances.
Credit
Yu Xia (Sichuan Tourism University, Chengdu, China)， Shuxin Guo (Southwest Jiaotong University, China).
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