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dc.contributor.authorAbidin, Sazali Zainal
dc.contributor.authorReddy, Krishna
dc.contributor.authorChen, Liehui
dc.identifier.citationAbidin, 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.description.abstractPurpose: 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.relation.ispartofInternational Journal of Managerial Finance
dc.subjectAgency theoryen_NZ
dc.subjectInformation asymmetryen_NZ
dc.subjectMonitoring hypothesisen_NZ
dc.subjectPublic companiesen_NZ
dc.subjectSeasoned equity offeringsen_NZ
dc.subjectStock marketsen_NZ
dc.titleDeterminants of ownership structure and performance of seasoned equity offerings: Evidence from Chinese stock marketsen_NZ
dc.typeJournal Articleen_NZ
dc.relation.isPartOfInternational Journal of Managerial Financeen_NZ

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