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The Announcement Effects of Private Equity Placement and Ownership Structure Changes— Evidence from Listed Companies in Taiwan
Journal of Financial Studies
View Archive Info| Field | Value | |
| Title |
The Announcement Effects of Private Equity Placement and Ownership Structure Changes— Evidence from Listed Companies in Taiwan
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| Creator |
Woan-Yuh Jang
Min-Shiou Tsai Yi-Fan Kuo |
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| Description |
This study examines if, how and when the market reacts to firm announcements of the private equity placement. A sample of 143 private placement announcements during January 2002 and April 2007 in Taiwan was obtained. Moreover, this paper also investigates the determinants of private placement discounts and stock price effects and whether the results vary with different private equity purposes. The findings show that the announcement effects for private equity placement will only occur on the date the issue price is determined. Cross-sectional analysis indicates that placement size has strongly positive correlation with private placement discounts and abnormal returns. Further, the positive announcement effect can partially explained by changes in ownership concentration and the results differ between strategic and financial purposes. It suggests that private equity placement discounts reflect compensation for expert advice or monitoring services provided by private investors. There is no managerial entrenchment exists. Key words: Private placement, Discount, Abnormal return, Ownership structure changes, Private Equity purposes |
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| Publisher |
Journal of Financial Studies
財務金èžå¸åˆŠ |
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| Date |
2011-03-10
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| Type |
—
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| Format |
application/pdf
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| Identifier |
http://www.jfs.org.tw/index.php/jfs/article/view/2011043
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| Source |
Journal of Financial Studies; Vol 18, No 1 (2010); 91
財務金èžå¸åˆŠ; Vol 18, No 1 (2010); 91 |
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| Language |
—
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