Discounts for Private Placement—Insights from Chinese Data

摘要：

Sample of exiting research on discounts for private placements (PPs) are before November 2007 when the market is booming. Based on PPs from May 8th 2006 to December 31th 2008, we find that, discounts for PPs are much higher than those of public offering. And discounts for PPs associated with controlling shareholders and relevant shareholders are significantly higher than those with no controlling shareholders or relevant shareholders. The higher percentage the controlling shareholders prescribe, the higher the discounts, and the stronger the motivation of tunneling. And the higher the difference between the prescribe percentage of controlling shareholders and their holding percentage, the higher the discounts. These indicate that private equity placements may be one way of tunneling for controlling shareholders. But these exit only when the stock market is booming. That is, only then can the controlling shareholders and relevant shareholders realize tunneling by high discounts of private equity placements to themselves.

关键词： Private placement (PP) discount tunneling

作者: HE Limei

作者单位: School of Economics and Management,North China University of Technology,P.R.China,100144

会议类型: 国际会议

会议名称: 2009 International Conference on Management Science and Engineering(2009管理科学与工程国际会议)

会议地点: 北京

会议语种:英文

页码: 408-414

在线出版日期: 2009-11-01（万方平台首次上网日期，不代表论文的发表时间）