Tunnelling in asset‐injecting private placements: evidence from China

This chapter looks at recent initiatives in the context of the European Commission's flagship plans for a Capital Markets Union (CMU) designed to encourage a pan-European private placement market. In reality, private placements are mainly available as a funding tool for medium-sized and larger companies. Nonetheless, private placements are regarded by CMU's policymakers as an alternative source of long-term funding, which is simple enough for smaller corporates and small and medium-sized enterprises (SME), and with benefits that they might find attractive. The Commission's initial intention in the design of a CMU was to enable a greater use by SMEs of private placements.

Download Full-text

Cash Dividend Behaviors around Private Placements in China: Interactions between Two Information-Releasing Events

Chinese Economy ◽

10.1080/10971475.2021.1930294 ◽

2021 ◽

pp. 1-27

Author(s):

Hao Jiang ◽

Shiguang Ma ◽

Aelee Jun

Keyword(s):

Cash Dividend ◽

Private Placements

Download Full-text

The over-optimism of financial analysts and the long-run performance of firms following private placements of equity

Finance Research Letters ◽

10.1016/j.frl.2012.12.001 ◽

2013 ◽

Vol 10 (2) ◽

pp. 82-92 ◽

Cited By ~ 5

Author(s):

Wen-Chun Lin ◽

Shao-Chi Chang ◽

Sheng-Syan Chen ◽

Tsai-Ling Liao

Keyword(s):

Financial Analysts ◽

Long Run ◽

Private Placements

Download Full-text

The Valuation Effect of Private Placements of Convertible Debt

The Journal of Finance ◽

10.2307/2328579 ◽

1991 ◽

Vol 46 (5) ◽

pp. 1925 ◽

Cited By ~ 7

Author(s):

L. Paige Fields ◽

Eric L. Mais

Keyword(s):

Convertible Debt ◽

Valuation Effect ◽

Private Placements

Download Full-text

The Importance of Blockholder Heterogeneity: Security Market Effects and Follow-On Activities

Journal of Financial and Quantitative Analysis ◽

10.1017/s0022109018000649 ◽

2018 ◽

Vol 54 (1) ◽

pp. 101-153 ◽

Cited By ~ 1

Author(s):

Jim Hsieh ◽

Tao-Hsien Dolly King

Keyword(s):

Hedge Funds ◽

Security Market ◽

Target Firm ◽

Market Effects ◽

Bond Returns ◽

Target Firms ◽

Performance Consequences ◽

Private Placements ◽

And Performance

Recent research on blockholders focuses on activist hedge funds and documents positive stock but negative bond returns. This study investigates the role of blockholder heterogeneity on security market effects and target firm follow-on activities across three important dimensions: identity, motive, and purchasing method. We show that target firms’ security returns and post-acquisition activities strongly correlate with blockholder heterogeneity. Further, bond returns are significantly positive for firms with blockholders’ debt-assistance motive while both stock and bond returns are significantly negative in private placements. Overall, our findings highlight the importance of blockholder heterogeneity on the valuation and performance consequences in block acquisitions.

Download Full-text