ENGLISH

Private Placement of Public Equity in China

By Pengcheng Song (auth.)

Book information

Publisher
Springer-Verlag Berlin Heidelberg
Year
2014
ISBN
978-3-642-55092-8, 978-3-642-55093-5
DOI
10.1007/978-3-642-55093-5
Language
english
Format
PDF
Filesize
2 MB (1619433 bytes)
Series
SpringerBriefs in Finance
Edition
1
Pages
80\91
Time added
2014-06-12 06:00:00
Finance/Investment/Banking

Description

By retrieving entries from the financial-data vendor Wind and collecting relevant data from private placement statements, the author builds a proprietary database and studies five aspects of private placement in China. He examines which listed firms are more likely to choose private placement over SEO in refinancing; he looks into the controlling shareholder’s decision on whether or not to purchase privately placed shares; he investigates how the offer discount is determined; he calculates announcement periods for abnormal returns on private placements. Where the abnormal return is significantly positive, he documents positive long-run abnormal return on private offerings and evidence supporting the under-reaction hypothesis. Finally, he concludes that the largest shareholders tunnel by means of excess discounts from which they benefit but which is harmful to other shareholders.

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