We investigate three issues about the impact of insider trades and institutional holdings on seasoned equity offerings (SEOs). First, we test how insider trades affect the trading behavior of institutional investors in SEOs. Second, we test whose trading behavior, either insiders or institutional investors, has greater explanatory power for the performance of SEO firms after issuing new stocks. Third, we analyze the industry-wide spillover effects of insider trades and institutional holdings. Empirically, we find that insiders and institutional investors of SEO firms may utilize similar information in their transactions because insider trades induce similar trading behavior for institutional investors. In addition, insider trades, relative to institutional holdings, have greater explanatory power for SEO firm’s long-term performance. Finally, compared with insider trades, institutional holdings have a more significant spillover effect in the industry of SEO firms.

This study examines US cross-border mergers and acquisitions (M&As) from 1990 to 2014, analyzing acquirer motivations and their long-term market performance implications. Diverging from previous research, it investigates how pre-merger driving factors impact post-merger synergies. Lower book-to-market ratios and higher debt ratios signal aggressive and leveraged expansion strategies. Profitable firms with high asset turnover and institutional ownership exhibit greater motivation for takeovers. Post-M&A, larger acquirers with higher dividend payouts, profitability, conservative management, and operational efficiency achieve superior long-term returns. Corporate governance factors play a role, with increased institutional ownership enhancing long-term performance, while high ownership concentration among the top shareholders hinders it. The study provides insights into the motivations and long-term implications of cross-border M&As by examining the impact of pre-merger factors on post-merger synergies. JEL Classification: G34