Use this URL to cite or link to this record in EThOS: https://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.593973
Title: Seasoned equity offerings in China
Author: Huang, Zhongnan
Awarding Body: SOAS, University of London
Current Institution: SOAS, University of London
Date of Award: 2012
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Abstract:
The thesis examines Chinese Seasoned Equity Offerings (SEOs): their practice, motivations, and implications to corporate governance. The sample used in the empirical analysis contains all Chinese SEOs from 1994 to 2009 (excluding the financial sector). The thesis consists of three empirical chapters. Chapters 3&4 use rights issues and public offerings to examine the application of four mainstream theories concerning SEO motivations, namely the trade-off theory, the information asymmetry theory, the agency theory, and the financing under growth theory. The difference between these two chapters is that Chapter 3 examines the impact of SEO motivations on the SEO decision by using firms' pre-issue characteristics, while Chapter 4 examines SEO motivations by checking the use of proceeds from SEOs and firms' post-issue long-term stock and operating performance. Chapters 3&4 document that the mainstream SEO theories in general also apply to Chinese SEOs. In addition Chapter 4 also provides evidence regarding the agency conflict between controlling shareholders and minority shareholders which is particularly relevant to the Chinese stock market. In Chapter 5 we examine the impact of private placements on corporate governance by focusing on firms' shareholder contestability. We show that firms whose shareholder contestability improves to a larger extent due to private placements experience better market reactions to the private placement announcement, suggesting that private placements could help Chinese firms improve corporate governance to reduce the agency conflict between controlling shareholders and minority shareholders. Overall, the thesis contributes to the existing literature by first examining the application of four mainstream theories concerning SEOs in Chinese stock market which is a immature market. We find evidence supporting all four theories, although the agency cost in China is more complicated due to the agency conflict between controlling shareholders and minority shareholders.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID: uk.bl.ethos.593973  DOI:
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