This paper compares the differences in default and failure risks between firms that conducted seasoned equity offerings (SEOs) and those that delisted or failed before undertaking an SEO or never pursued SEOs. We find that companies using SEOs have significantly lower default and bankruptcy risks than their counterparts. While part of this reduction in default risk is due to the mechanical effect of raising equity capital, strengthening the firm's balance sheet, and reducing financial leverage, we also observe that the use of SEOs by firms contributes to reduced risk through strategic management actions and improvements in corporate governance. Specifically, improved governance stemming from effective CEO leadership and monitoring by institutional investors plays a crucial role in mitigating default and failure risks in SEO companies. Additionally, companies undertaking SEOs are less likely to delist within five years post-IPO. Our results are robust to alternative approaches that mitigate endogeneity, reinforcing the conclusion that SEOs contribute to financial stability beyond the mechanical infusion of equity capital.