DocumentCode :
2970393
Title :
The Negative Impact of Equity Issue on China Market
Author :
Liao Bo ; Zhang Xiaofeng
Author_Institution :
Econ. & Manage. Acad., Changsha Univ. of Sci. & Technol., Changsha, China
fYear :
2011
fDate :
12-14 Aug. 2011
Firstpage :
1
Lastpage :
4
Abstract :
This paper investigated how and why abnormal stock returns associate with the announcement of equity issues by Chinese firms. We estimated abnormal return by OLS, using the market model. Then we chose some variables and established an econometric model to verify some hypothesis introduced in previous study. The empirical results indicate that there exist negative abnormal return on China stock market and the average abnormal return on announcement day is -0.017. Regression analysis show that the price pressure hypothesis and the wealth transfer hypothesis can well explain the negative abnormal return on China stock market which is also associated with the company´s investment opportunities.
Keywords :
econometrics; investment; least squares approximations; pricing; regression analysis; stock markets; China stock market; Chinese firms; OLS; abnormal stock return; company investment opportunities; econometric model; equity announcement; price pressure hypothesis; regression analysis; wealth transfer hypothesis; Companies; Correlation; Econometrics; Investments; Security; Stock markets; Subscriptions;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Management and Service Science (MASS), 2011 International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4244-6579-8
Type :
conf
DOI :
10.1109/ICMSS.2011.5998556
Filename :
5998556
Link To Document :
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