Empirical studies of the effect of China 's A-share market issuance announcement
|Keywords||Additional Announcement effect Event study methodology Over - yield|
Since 1998, China's A-share market since the introduction of additional refinancing program, the stock issuance of listed companies in China has gradually become an important means of equity refinancing. SEOs announcement release, however, is often accompanied by significant decreases in stock prices, investors suffered unexpected losses, the negative effects of such stock issuance announcement of the listed company's share price is called the stock issuance announcement effect, and even investors vividly described as the \Many foreign scholars have been widespread and systematic study of stock issuance announcement effect from price pressure hypothesis, information asymmetry hypothesis, financing preference theory perspective analysis illustrates the phenomenon. Our country due to the issuance of new shares, this mode of financing is not the time, research in this area, especially on quantitative analysis of empirical research is not very rich. With the issuance of new shares to gradually replace the placement of shares to become the primary means of equity financing in the future of China's listed companies, strengthening effect on the issuance of new shares, especially empirical research is particularly important. Based on 144 listed companies in China's A-share market from January 1999 to the end of January 2008, the successful issuance of A shares as the research object, using the event study methodology and cross-sectional regression analysis, analysis of China's A-share listed companies issuing new shares announcement effect, explore the announcement effect of the main factors. Which in the process of analysis of the excess yield in this article select the board announcement, the shareholders' meeting announcement, the Audit Commission through the date of issuance announcement day, listed on the announcement date and the date of issuance of the listing six time points were analyzed; then the cumulative excess yield regression analysis to select the announcement effects are more representative of the Board of Directors of the announcement date and the issuance announcement day, selected explanatory variables in the regression analysis, trying to identify the impact of the announcement effect of the additional parameters, in order to investors' decision-making reference. The results of this study indicate that the securities market of China's A-share issuance of new shares, the announcement effect, but the extent of the negative effects caused by each time point announcement is not the same, and showing their special characteristics. Accumulated excess income rate regression analysis comparing the proportion of non-tradable shares, market conditions, asset-liability ratio, price-earnings ratio, and other relevant variables issuance announcement effect impact of significantly with the intensity of the extent and explained, followed by the empirical results to make the relevant explain and reason analysis. The article concludes with several recommendations to improve China's A-share issuance market.