Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)

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The Impact of Private Equity Financing in Chinese Market

Authors
Zhiyao Lin1, *
1School of Business and Management, The Chinese University of Hong Kong, Shen Zhen, China
*Corresponding author. Email: Zhiyaolin@link.cuhk.edu.cn
Corresponding Author
Zhiyao Lin
Available Online 31 December 2022.
DOI
10.2991/978-94-6463-036-7_220How to use a DOI?
Keywords
Event study; Alpha return; Private equity financing; Market efficiency; Behavioural finance
Abstract

This paper uses A-share listed companies' private equity financing events in Shanghai and Shenzhen stock exchanges from January 2010 to December 2019 as a research sample. It calculates the cumulative excess return of the corresponding stocks. Combined with the method of event research, this paper explores the impact of private equity financing events on excess returns. Overall, the cumulative excess return rises during the ten trading days before and after the event. The increase is particularly pronounced. This result also shows that the announcement of a private equity financing of such information can be quickly reflected in the price of the listed company's stock, thus reflecting the semi-strong market effectiveness of China's securities market to a certain extent. In addition, this article will also divide companies by industry type, ROE, book-to-market value ratio and research these multiple possible factors that may affect the cumulative excess return. The research may contribute to stock selection for investors and portfolio construction for managers.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
31 December 2022
ISBN
10.2991/978-94-6463-036-7_220
ISSN
2352-5428
DOI
10.2991/978-94-6463-036-7_220How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Zhiyao Lin
PY  - 2022
DA  - 2022/12/31
TI  - The Impact of Private Equity Financing in Chinese Market
BT  - Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
PB  - Atlantis Press
SP  - 1483
EP  - 1488
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-036-7_220
DO  - 10.2991/978-94-6463-036-7_220
ID  - Lin2022
ER  -