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Determinants of ownership structure and performance of seasoned equity offerings: Evidence from Chinese stock markets

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dc.contributor.author Abidin, Sazali Zainal
dc.contributor.author Reddy, Krishna
dc.contributor.author Chen, Liehui
dc.date.accessioned 2012-10-11T21:58:26Z
dc.date.available 2012-10-11T21:58:26Z
dc.date.copyright 2012
dc.date.issued 2012
dc.identifier.citation Abidin, S.Z., Reddy, K. & Chen, L. (2012). Determinants of ownership structure and performance of seasoned equity offerings: Evidence from Chinese stock markets. International Journal of Managerial Finance, 8(4), 304-331. en_NZ
dc.identifier.issn 1743-9132
dc.identifier.uri http://hdl.handle.net/10289/6716
dc.description.abstract Purpose: Since the initiation of the share split reform by the Chinese Securities Regulatory Commission (CSRC) in 2005, the private placement has become the major source of raising equity after IPO. The purpose of this paper is to investigate why listed firms in China prefer private placements compared to other options of raising capital. Design/methodology/approach: The ordinary least squares regression, the piecewise regression and the cross-sectional regression analysis were undertaken to investigate the determinants and characteristics of the seasoned-equity offerings announcement effects. Probit regression analysis was taken to estimate the probability of a firm choosing private placements. Findings: The authors find positive significant announcement abnormal returns for private placement. The findings also indicate that operating performance deteriorates immediately after announcement and poor operating performance is more likely to be contributed by large size portfolios, which suggests size effect. Research limitations/implications: The paper's evidence contributes to an understanding of the wider implication of the share split reform undertaken by the CSRC. Practical implications: The paper provides insights for policy makers in China and around the world who have and wish to adopt similar practices within their jurisdictions. Similar research can be conducted in other emerging markets to enable better understanding and implications of seasoned equity offerings on firm financial performance. Originality/value: The paper is novel in regard to the data and the wider research paradigm used. en_NZ
dc.language.iso en
dc.publisher Emerald en_NZ
dc.relation.ispartof International Journal of Managerial Finance
dc.subject Agency theory en_NZ
dc.subject China en_NZ
dc.subject Information asymmetry en_NZ
dc.subject Monitoring hypothesis en_NZ
dc.subject Public companies en_NZ
dc.subject Seasoned equity offerings en_NZ
dc.subject Shares en_NZ
dc.subject Stock markets en_NZ
dc.title Determinants of ownership structure and performance of seasoned equity offerings: Evidence from Chinese stock markets en_NZ
dc.type Journal Article en_NZ
dc.identifier.doi 10.1108/17439131211261242 en_NZ


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