Equity transfers and market reactions: Evidence from Chinese stock markets


Kling, Gerhard and Gao, Lei (2008) Equity transfers and market reactions: Evidence from Chinese stock markets Journal of Emerging Market Finance, 7, (3), pp. 293-308. (doi:10.1177/097265270800700304).

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Description/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

Item Type: Article
Digital Object Identifier (DOI): doi:10.1177/097265270800700304
ISSNs: 0972-6527 (print)
Subjects:
ePrint ID: 165719
Date :
Date Event
December 2008Published
Date Deposited: 19 Oct 2010 14:43
Last Modified: 18 Apr 2017 03:40
Further Information:Google Scholar
URI: http://eprints.soton.ac.uk/id/eprint/165719

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