Proceedings of 2016 2nd International Conference on Humanities and Social Science Research (ICHSSR 2016)

A Study on the Short-Term Market Effect of China A-share Private Placement and Medium and Small Investors' Decision-Making

Authors
Shuangjun Li
Corresponding Author
Shuangjun Li
Available Online July 2016.
DOI
https://doi.org/10.2991/ichssr-16.2016.14How to use a DOI?
Keywords
Private Placement, Announcement Effect, Insider Trading
Abstract

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.

Copyright
© 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/).

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Volume Title
Proceedings of 2016 2nd International Conference on Humanities and Social Science Research (ICHSSR 2016)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
July 2016
ISBN
978-94-6252-235-0
ISSN
2352-5398
DOI
https://doi.org/10.2991/ichssr-16.2016.14How to use a DOI?
Copyright
© 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  - https://doi.org/10.2991/ichssr-16.2016.14
ID  - Li2016/07
ER  -