Equity transfers and market reactions: Evidence from Chinese stock markets
Equity transfers and market reactions: Evidence from Chinese stock markets
Our logit models explain positive or negative short–term market reactions due to equity transfers in China. In contrast to former studies, we classify transfers into private transactions, privatisations, transfers among state–owned enterprises (SOEs) and nationalisations. We control for uncompensated transactions, transfers of holding rights, replacements of the CEO and related party transactions. Privatisations trig–ger positive responses, whereas nationalisations cause declining stock prices. The market appreciates reforms in the state–owned sector if reorganisations include the transfer of holding rights and not just replacing the CEO. Uncompensated transfers and non–transparent transactions of related parties diminish gains for minority shareholder
293-308
Kling, Gerhard
feea1f9e-c49a-4d9c-b688-ec839cef9624
Gao, Lei
885f6f80-3796-4bdb-b75d-7c8905b6b5de
December 2008
Kling, Gerhard
feea1f9e-c49a-4d9c-b688-ec839cef9624
Gao, Lei
885f6f80-3796-4bdb-b75d-7c8905b6b5de
Kling, Gerhard and Gao, Lei
(2008)
Equity transfers and market reactions: Evidence from Chinese stock markets.
Journal of Emerging Market Finance, 7 (3), .
(doi:10.1177/097265270800700304).
Abstract
Our logit models explain positive or negative short–term market reactions due to equity transfers in China. In contrast to former studies, we classify transfers into private transactions, privatisations, transfers among state–owned enterprises (SOEs) and nationalisations. We control for uncompensated transactions, transfers of holding rights, replacements of the CEO and related party transactions. Privatisations trig–ger positive responses, whereas nationalisations cause declining stock prices. The market appreciates reforms in the state–owned sector if reorganisations include the transfer of holding rights and not just replacing the CEO. Uncompensated transfers and non–transparent transactions of related parties diminish gains for minority shareholder
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Published date: December 2008
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Local EPrints ID: 165719
URI: http://eprints.soton.ac.uk/id/eprint/165719
ISSN: 0972-6527
PURE UUID: aef5df42-2742-42dd-814a-697af418fb0e
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Date deposited: 19 Oct 2010 14:43
Last modified: 14 Mar 2024 02:11
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Author:
Gerhard Kling
Author:
Lei Gao
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