The Empirical Study on Stock Price Effect of Private Placement Announcement in China's Main Board Market

DOI

10.2991/emim-17.2017.128How to use a DOI?

Keywords

Private placement; Event study; Abnormal return ratio; Stock price effect

Abstract

Since the split share structure reform, private placement has become an important mode of refinancing of listed companies in China. In this paper, based on the data in 2015, the event study method is used to study the effect of stock price on private placement. The results show that there is a significant positive stock price effect. And then put forward the corresponding policy recommendations, including providing valuable reference for China's market regulator to better guide the issuance of behavior and make private placement become more effective way of refinancing. Furthermore, this paper will also guide the investors to invest rationally and effectively.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Menglu Zheng
PY  - 2017/04
DA  - 2017/04
TI  - The Empirical Study on Stock Price Effect of Private Placement Announcement in China's Main Board Market
BT  - Proceedings of the 7th International Conference on Education, Management, Information and Mechanical Engineering (EMIM 2017)
PB  - Atlantis Press
SP  - 635
EP  - 639
SN  - 2352-538X
UR  - https://doi.org/10.2991/emim-17.2017.128
DO  - 10.2991/emim-17.2017.128
ID  - Zheng2017/04
ER  -