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dc.contributor.authorLiu, J.
dc.contributor.authorAkbar, Saeed
dc.contributor.authorShah, S.Z.A.
dc.contributor.authorZhang, D.
dc.contributor.authorPang, D.
dc.date.accessioned2019-06-12T11:04:17Z
dc.date.accessioned2019-06-19T10:27:58Z
dc.date.available2019-06-12T11:04:17Z
dc.date.available2019-06-19T10:27:58Z
dc.date.issued2016-06
dc.identifier.citationLiu J, Akbar S, Shah SZA et al (2016) Market reaction to seasoned offerings in China. Journal of Business Finance & Accounting. 43(5-6): 597-653.en_US
dc.identifier.urihttp://hdl.handle.net/10454/17130
dc.descriptionYesen_US
dc.description.abstractThis study examines stock market reaction to the announcement of various forms of seasoned issues in China. Our empirical evidence demonstrates that market reactions differ in ways that suggest a difference between management's internal assessment and the market's assessment of the stock price. The market responds unfavourably to the announcement, notably in the case of rights issues and also with regard to open offers. Private placements experience an unfavourable pre‐announcement reaction, which contrasts with the favourable reaction after the event. Convertible bond issues generate positive excess returns consistent with the market's confidence that they can help to align management and shareholders’ interests. Further investigation shows that market reaction is related to factors specific to the issuer and issue by reference to the period immediately surrounding the issue. Specifically, ownership concentration, agency matters connected with equity offerings, investor protection connected with fund allocation and security pricing, and the influence of powerful moneyed interests together provide an instructive insight into market reaction. Institutional inefficiency pertaining to underwriting, auditing, analysts’ forecasts and credit ratings are found to have a weak association with market price, consistent with due public scepticism concerning management and their gatekeepers.en_US
dc.language.isoenen_US
dc.relation.isreferencedbyhttps://doi.org/10.1111/jbfa.12198en_US
dc.rights© 2016 The Authors Journal of Business Finance & Accounting Published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.en_US
dc.subjectSeasoned issuesen_US
dc.subjectSeasoned equity offeringsen_US
dc.subjectConvertible bond issuesen_US
dc.subjectMarket reactionen_US
dc.subjectInformationen_US
dc.subjectInformation asymmetryen_US
dc.subjectAgency costsen_US
dc.subjectMarket infrastructureen_US
dc.subjectChinaen_US
dc.subjectG12en_US
dc.subjectG14en_US
dc.subjectG32en_US
dc.subjectG30en_US
dc.titleMarket reaction to seasoned offerings in Chinaen_US
dc.status.refereedYesen_US
dc.date.Accepted2016-02-10
dc.date.application2016-02-28
dc.typeArticleen_US
dc.type.versionPublished versionen_US
dc.date.updated2019-06-12T10:04:19Z
refterms.dateFOA2019-06-19T10:28:39Z


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