Event Study Of Chinese Public Company Seasoned Equity Offerings

Seasoned Equity Offerings of listed companies have always been looked as an important issue in Chinese stock market. Such behavior has kept impacting stock prices, thus it is worth to take a deep look in this issue. Seasoned Equity Offerings include Rights Offerings, Rights Placing and Convertible Bonds. In this paper, both event study and code study of the market reflection have been combined. On one hand, the deep-seated causation of the special behavior of Seasoned Equity Offerings in China has been discussed theoretically. On the other hand, the analysis has been processed practically on the probability of the investors gain profit by Seasoned Equity Offerings in the primary or secondary market and the investors'attitude on Seasoned Equity Offerings. This paper is a valuable reference to all kinds of investors in the stock market.Based on the methodology of"event study", three cases have been studied, which are Rights Offerings of"Zhao Shang Di Chan", Rights Placing of"Zhong Ji Ji Tuan"and Convertible Bonds of"Min Sheng Bank". The conclusion of this paper:1. The efficiency of Chinese stock market is kept increasing and the quality of listed companies'Seasoned Equity Offerings project is kept optimizing, hence it is irrational to treat the behavior of listed companies'Seasoned Equity Offerings as bad news.2. AS the promotion system for Chinese listed companies'administrators is not complete enough, some of top listed companies also adopt Seasoned Equity Offerings. It provides the chances for investors to participate in Seasoned Equity Offerings project of those top listed companies.3. In secondary market, Rights offerings and Rights Placing have a negative impact on stock price. However, compared with them, the negative impact of issuing the Convertible bonds is fairly small.4. Due to the deficiency of running structure, listed companies prefer Seasoned Equity Offerings. It leads to that Convertible Bonds published in China is quite favourable and that Convertible Bonds have some aspects of stock characteristics. Hence, the value of Some of Convertible Bonds are underestimated. In fact, Chinese...