The stock market reaction to the 2005 split share structure reform in China

Pacific Basin Finance Journal

Volumn 20, Issue 4, 2012, Pages 543-560

  Beltratti, Andrea ^a   Bortolotti, Bernardo ^b   Caccavaio, Marianna ^c  

^a BOCCONI UNIVERSITY   (Italy)

^b UNIVERSITY OF TURIN   (Italy)

^c LUISS UNIVERSITY   (Italy)

Author keywords

Chinese stock market; Corporate governance; Financial reform; Neglected stocks; Ownership structure; Privatization

Indexed keywords

EID: 84857594634     PISSN: 0927538X     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.pacfin.2012.01.004     Document Type: Review

References (36)

1. Acharya V., Pedersen L.H. Asset pricing with liquidity risk. Journal of Financial Economics 2005, 77:375-410.
2. Amihud Y. Illiquidity and stock returns: cross-section and time-series effects. Journal of Financial Markets 2002, 5:31-56.
3. Bebchuk L., Cohen A. The costs of entrenched boards. Journal of Financial Economics 2005, 78:409-433.
4. Bebchuk L., Cohen A., Ferrell A. What matters in corporate governance?. Review of Financial Studies 2009, 22:783-827.
5. Bengtsson, A., 2005. China's privatization reform. Bachelor Thesis, Lund University.
6. Berkman H., Cole R.A., Fu J. Political connections and minority-shareholder protection: evidence from securities-market regulation in China. Journal of Financial and Quantitative Analysis 2010, 45:1391-1417.
7. Calomiris C.W., Fisman R., Wang Y. Profiting from government stakes in a command economy: evidence from Chinese asset sales. Journal of Financial Economics 2010, 96:399-412.
8. Chen Z., Xiong P. Discounts on illiquid stocks: evidence from China 2011, 0-56. Yale ICF Working Paper.
9. Cremers M., Nair V. Governance mechanisms and equity prices. Journal of Finance 2005, 60:2859-2894.
10. Denis D.K., McConnell J.J. International corporate governance. Journal of Financial and Quantitative Analysis 2003, 38:1-36.
11. Doidge C., Karolyi G.A., Stulz R. Why do countries matter so much for corporate governance?. Journal of Financial Economics 2007, 86:1-39.
12. Faccio M., Lang L.H.P. The ultimate ownership of western European corporations. Journal of Financial Economics 2002, 65:365-395.
13. Fama E., French K. Multifactor explanations of asset pricing anomalies. Journal of Finance 1996, 51:55-84.
14. Gompers P.A., Ishii J.L., Metrick A. Corporate governance and equity prices. Quarterly Journal of Economics 2003, 118:107-155.
15. Green S., Black A. A market in control: non-tradeable shares deals in companies listed at the Shenzen Stock Exchange. The Royal Institute of International Affairs, Asia programme working paper 2003, 11.
16. Haveman, H.A., Wang, Y., 2012. Going (More) Public: Institutional Isomorphism and Ownership Reform among Chinese Firms, mimeo.
17. Hong H., Scheinkman J., Xiong W. Asset float and speculative bubbles. Journal of Finance 2006, 61:1073-1117.
18. Kikeri S., Nellis J. An assessment of privatization. The World Bank Research Observer 2004, 19:1.
19. Li K., Wang T., Cheung Y., Jiang P. Privatisation and risk sharing: evidence from the split share structure reform in China. Review of Financial Studies 2011, 24:2499-2525.
20. Liao L., Liu B., Wang H. Information Discovery in Share Lockups: Evidence from the Split-Share Structure Reform in China. Financial Management 2011, 40(4):1001-1027.
21. Lin J., Singh A.K., Yu W. Stock splits, trading continuity and the cost of equity capital. Journal of Financial Economics 2009, 3:474-489.
22. Lins K. Equity ownership and firm value in emerging markets. Journal of Financial and Quantitative Analysis 2003, 38:159-184.
23. Lu, F., Balatbat, M., Czernkowski, R., 2008. The role of consideration in China's split share structure reform, mimeo.
24. Mattlin, M., 2007. The Chinese Government's New Approach to Ownership and Financial Control of Strategic State-Owned Enterprises. BOFIT Discussion Papers, 10.
25. Megginson W., Netter J. From state to market: a survey of empirical studies on privatization. Journal of Economic Literature 2001, 39(2):321-389.
26. Mei J., Scheinkman J., Xiong W. Speculative trading and stock prices: an analysis of Chinese AB share premia. Annals of Economics and Finance 2009, 10:225-255.
27. Michaely R., Shaw W. Does the choice of auditor convey quality in an initial public offering?. Financial Management 1995, 24:15-30.
28. Mitton T. A cross-firm analysis of the impact of corporate governance on the East Asian financial crisis. Journal of Financial Economics 2002, 64:215-241.
29. Morey M., Gottesman A., Baker E., Godridge B. Does better corporate governance result in higher valuations in emerging markets? Another examination using a new data set. Journal of Banking and Finance 2009, 33:254-262.
30. OECD Economic Surveys: China 2010.
31. Pastor L., Stambaugh R. Liquidity risk and expected stock returns. Journal of Political Economy 2003, 113:642-685.
32. Stulz R. The limits of financial globalization. Journal of Finance 2005, 60:1595-1638.
33. Sun Q., Tong W.H.S. China share issue privatization: the extent of its success. Journal of Financial Economics 2003, 70:183-222.
34. Wan G., Yuan C., Ha S. Non-tradeable to tradeable - reforming the stock markets in the PRC 2005, Linklaters.
35. Wang F., Xu X. What determines the Chinese Stock Returns?. Financial Analyst Journal 2004, 60:65-77.
36. Xu X., Wang Y. Ownership structure and corporate governance in Chinese stock companies. China Economic Review 1999, 10:75-98.