TITLE:
A Comparative Study of the Refinancing Announcement Effect of Listing Corporation in China
AUTHORS:
Wan Xiao, Yukun Zhang
KEYWORDS:
Listed Corporation, Refinancing, Announcement Effect, Event Study
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.8,
August
13,
2018
ABSTRACT: The paper chooses the
listing Corporations which refinanced from June 1, 2006 to December 31, 2014 as
samples to
test and compare the announcement effect of five refinance modes, which are
public issuance, non-public issuance, allotment and issuance of corporate
bonds, and convertible
bonds. Study has showed that the announcement effect of non-public issuance is
positive and allotment is negative in large confidence degree, while public
issuance and convertible bonds issuance show negative in a lower confidence
degree, and issuance of corporate bonds isn’t significant. Therefore, China’s capital market favors non-public
issuance most and regard convertible bonds as substitute, think allotment
bearish widely, while see light issuance of corporate bonds. So, we must
develop incentive effect of convertible bonds, Strengthen corporate debt’s
constraint mechanism, regulate
the behavior of the big shareholders in allotment. It is found refinancing
information leakage phenomenon in empirical research which should cause the
attention of regulators.