IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-036-7_220.html

The Impact of Private Equity Financing in Chinese Market

In: Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)

Author

Listed:
  • Zhiyao Lin

    (The Chinese University of Hong Kong, School of Business and Management)

Abstract

This paper uses A-share listed companies' private equity financing events in Shanghai and Shenzhen stock exchanges from January 2010 to December 2019 as a research sample. It calculates the cumulative excess return of the corresponding stocks. Combined with the method of event research, this paper explores the impact of private equity financing events on excess returns. Overall, the cumulative excess return rises during the ten trading days before and after the event. The increase is particularly pronounced. This result also shows that the announcement of a private equity financing of such information can be quickly reflected in the price of the listed company's stock, thus reflecting the semi-strong market effectiveness of China's securities market to a certain extent. In addition, this article will also divide companies by industry type, ROE, book-to-market value ratio and research these multiple possible factors that may affect the cumulative excess return. The research may contribute to stock selection for investors and portfolio construction for managers.

Suggested Citation

  • Zhiyao Lin, 2022. "The Impact of Private Equity Financing in Chinese Market," Advances in Economics, Business and Management Research, in: Yushi Jiang & Yuriy Shvets & Hrushikesh Mallick (ed.), Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022), pages 1483-1488, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-036-7_220
    DOI: 10.2991/978-94-6463-036-7_220
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6463-036-7_220. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.