Three essays on the long-run performance of firms issuing seasoned equity offering. Does liquidity risk explain the underperformance following seasoned equity offerings? In the first essay, I examine whether firms that issue seasoned equity experience stock liquidity gains after the offering and explore the role of liquidity risk in explaining their long-run performance. Long-run returns following seasoned equity offerings: market timing or discount rate effect? In the second essay, I build on conditional latent information models to test the market timing explanation for the long-run performance following seasoned equity offerings (SEOs). Propensity score matching and long-run performance following seasoned equity offerings Li and Zhao (2006) and Cheng (2003) report that propensity score matching eliminates the abnormal performance of firms issuing seasoned equity.