Announcement Effects of Seasoned Equity Offerings in China

Shahid, Humera; Xia, Xinping; Mahmood, Faiq; Usman, Muhammad

doi:10.5539/ijef.v2n3p163

Cited by 16 publications

(10 citation statements)

References 28 publications

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“…There have been different studies on China’s public equity offerings. In contrast to our finding that the median CAR[−3,+3] for PEPs in China is 4.6%, Shahid et al () argue that the SEO’s announcement effect has a CAR[−3,+3] of −1.44% in China, while this negative market reaction to the SEO announcements is consistent with other prior studies in China (Cheung et al ; Fung et al ).…”

Section: Methodssupporting

confidence: 89%

Institutional Ownership and Private Equity Placements: Evidence from Chinese Listed Firms

Li²,

et al. 2018

Int Rev Finance

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This paper examines the impact of institutional ownership on the performance of private equity placements (PEPs) for listed firms in China. We find that the presence of institutional investors can alleviate the information asymmetries between listed firms and the market. The market reaction to PEP announcements is significantly smaller if there is a higher portion of institutional shareholdings. Long‐term firm operational performance after PEPs is positively correlated with institutional shareholdings. Moreover, we find that the relationship between institutional shareholdings and PEP performance is mainly driven by nonlisted corporate investors and mutual funds. Finally, the relationship between PEP performance and institutional shareholdings is stronger in smaller PEP issuers.

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Section: Methodssupporting

confidence: 89%

Institutional Ownership and Private Equity Placements: Evidence from Chinese Listed Firms

Li²,

et al. 2018

Int Rev Finance

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“…The results showed that there were significant differences with the criteria <α (0.05), the hypothesis was accepted. The results of the study are the same as (Gajewski and Ginglinger, 2002;Shahid et al 2010) examining the event of the announcement of a right issue with the results of the study that abnormal returns differ significantly around the announcement of the right issue.…”

Section: Hypothesis Testingmentioning

confidence: 75%

Analysis Semi-Strong Efficiency Market Testing Through of Right Issue Influence on Abnormal Return in Emitens Indonesia Stock Exchange Period 2017-2019

Pathonah¹,

Purwanto²,

Ermawati³

2021

Proceedings of the 1st International Conference on Sustainable Management and Innovation, ICoSMI 2020, 14-16 September 2020, Bo

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This study aims to see the semi-strong-efficient form of the Indonesian capital market in the context of announcing rights issues. This study used 40 companies that conducted rights issues during 2017 -2019. To prove market efficiency, study uses abnormal returns with a normality test kolmogorov-smirnov. Based on the hypothesis test there is no significant difference in expected return but there are significant differences in the actual return and CAAR. The results of the analysis concluded that the right issue announcement information has information that causes differences in investor preferences that are reflected in changes in stock prices that can result in changes in abnormal returns before and after the right issue event. Rapid reaction by the market to the information received so that it is fast in decision making and empirical results show that Indonesian capital market is expressed as semi-strong form of market efficiency.

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“…Hypotheses Development. In the literature, the arising issues regarding market reactions following right issues can be generally classified into two main factions, namely short-term reactions (Ariff et al, 2007;Barnes and Walker, 2006;Feng et al, 2018;Iqbal, 2008;Krishnan et al, 2010;Paskelian and Bell, 2010;Shahid et al, 2010) and long-term reactions (Andrikopoulos, 2009;Bayless and Jay, 2008;Devos et al, 2017;Du et al, 2016;Dutta, 2017;Mansali and Daadaa, 2018;Silva and Bilinski, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

The Intra-Industry Spillovers of Indonesian Right Offerings

Rafik¹,

Arafah²

2019

MIX

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This study aims to examine the spillover effect of right offerings to the industry on the Indonesian Stock Exchange in the period 2009-2016. This study is designed using event study methodology. In total, there are 96 issuing companies (issuers) and 1205 non-issuing companies (non-issuers) used as the sample which was obtained using a purposive sampling technique. The test for information content on the right issues was conducted using standard t-test on the average cumulative abnormal return of issuers and non-issuers in the period t-10 to t+10 around the issuance. The research found positive abnormal returns for issuers in t0 to t+4 but did not confirm the spillover effect to non-issuers over the observed (window) periods. The average cumulative abnormal returns are randomly distributed during the window period. These results confirm the absence of intraindustry effect of right issues on the non-issuers’ performance

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Announcement Effects of Seasoned Equity Offerings in China

Cited by 16 publications

References 28 publications

Institutional Ownership and Private Equity Placements: Evidence from Chinese Listed Firms

Institutional Ownership and Private Equity Placements: Evidence from Chinese Listed Firms

Analysis Semi-Strong Efficiency Market Testing Through of Right Issue Influence on Abnormal Return in Emitens Indonesia Stock Exchange Period 2017-2019

The Intra-Industry Spillovers of Indonesian Right Offerings

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