A Study on the Short-Term Market Effect of China A-share Private Placement and Medium and Small Investors' Decision-Making
- 10.2991/ichssr-16.2016.14How to use a DOI?
- Private Placement, Announcement Effect, Insider Trading
Since A-share market achieved full circulation after the non-tradable share reform in 2006, the private placement has been the main equity refinancing method of the listed companies in Chinese stock market. Mainly adopting the method of event study, this paper uses 867 listed companies which implemented the private placement from 2013 to 2015 as the sample to analyze the market effect during the public announcement period. The private placement has been proved empirically to bring the obvious significant abnormal return during the announcement period. Besides, the amount of excess earnings varies when different modes of private placement is adopted. Therefore, different levels of market effects require the small and medium-sized investors to adopt the corresponding investment decision-makings.
- © 2016, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Shuangjun Li PY - 2016/07 DA - 2016/07 TI - A Study on the Short-Term Market Effect of China A-share Private Placement and Medium and Small Investors' Decision-Making BT - Proceedings of 2016 2nd International Conference on Humanities and Social Science Research (ICHSSR 2016) PB - Atlantis Press SP - 54 EP - 60 SN - 2352-5398 UR - https://doi.org/10.2991/ichssr-16.2016.14 DO - 10.2991/ichssr-16.2016.14 ID - Li2016/07 ER -