SEASONED EQUITY OFFERINGS: ANTARA AGENCY THEORY, WINDOWS OF OPPORTUNITY, DAN PENURUNAN KINERJA
H. SRI SULISTYANTO
Fakultas Ekonomi Unika Soegijapranata Semarang
Fakultas Ekonomi Universitas Mandala Madiun
[Jurnal Akuntansi SNA 6]
Performance declining after seasoned equity offerings can be explained by agency theory and windows of opportunity concepts. Those concepts show the management oportunistic behavior because of asymmetric information happened beetwen manager and investor before the offering. However, that condition can not be defended and make the performance declining in the long term both in financial and stock performances. This research will prove the declining of performance because of the management oportunistic behavior. This research uses the datas of firms which do the seasoned equity offerings on Jakarta Stock Exchange, in 19941997 periods. Using the modified jones model, discretionary accrual as the proxy of management opportunistic behavior is measured to prove that prejudise.
Keywords: seasoned equity offerings, agency theory,windows of opportunity, discretionary accruals.
Seasoned equity offerings is an additional equity offerings by the company public, outside equity offered to the public through initial public offerings (Megginson, 1997). In addition to finance its operations, this equity offering by the company to seek additional funds to be used for additional investments or to pay its debts at maturity. Seasoned equity offerings, in essence, can be done in two ways, first, through the mechanism of a rights issue, which sold the rights (right) to the old shareholders to buy additional equities with certain price and at a given moment. This mechanism is usually done by a company whose ownership is concentrated, with the aim to protect the interests of shareholders in order to maintain the same proportions as before the ownership of this equity offering (preemptive right) (Eckbo & Masulis, 1992; Jones, 2000). Second, through a second mechanism offerings, third offerings, and so on, namely selling additional equity is not only to shareholders but also to each investor in a market that wants to buy it (Megginson, 1997).