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Expropriation: Evidence from Rights Issues in China

Listed author(s):
  • Hongbo Pan
  • Xinping Xia
  • Minggui Yu
Registered author(s):

    This paper examines the expropriation of tradable shareholders in rightsissuing firms with the split share structure in China. Using a sample of 444 rights issues from 1999 to 2004, we find that the change in wealth of tradable shareholders is negatively correlated with the change in wealth of nontradable shareholders, consistent with an expropriation effect. Additional evidence indicates that the expropriation effect in rights issues is exacerbated when the firm is not ultimately controlled by the government, the nontradable shareholders do not subscribe the shares of rights issues, or the firm has a large second-largest shareholder.

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    File URL: http://hdl.handle.net/10.2753/REE1540-496X440101
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    Article provided by Taylor & Francis Journals in its journal Emerging Markets Finance and Trade.

    Volume (Year): 44 (2008)
    Issue (Month): 1 (January)
    Pages: 5-20

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    Handle: RePEc:taf:emfitr:v:44:y:2008:i:1:p:5-20
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    1. Brown, Stephen J. & Warner, Jerold B., 1985. "Using daily stock returns : The case of event studies," Journal of Financial Economics, Elsevier, vol. 14(1), pages 3-31, March.
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    7. repec:hrv:faseco:30747191 is not listed on IDEAS
    8. Alexander Dyck & Luigi Zingales, 2004. "Private Benefits of Control: An International Comparison," Journal of Finance, American Finance Association, vol. 59(2), pages 537-600, April.
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    20. repec:hrv:faseco:30747163 is not listed on IDEAS
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