This figure depicts the relation between managers’ private information revealed at the SEO announce-ment date and SEO stock price before and after the issue announcement for alternative types of investor
behavior. Fig.1a shows the relation assuming investors act rationally and discount newinformation into
stock price with no delay. Fig. 1b shows the relation when investors delay impounding managers’
private information revealed at the issue announcement into the stock price.
behavior. Fig.1a shows the relation assuming investors act rationally and discount newinformation into
stock price with no delay. Fig. 1b shows the relation when investors delay impounding managers’
private information revealed at the issue announcement into the stock price.
Bilinski, P., Strong, N., 2013. Managers’ private information, investor underreaction and long-run SEO performance. Eur. Financ. Manag. 19, 956–990.