EMPIRICAL STUDY ON THE RELATIONSHIP AMONG GOVERNMENT HOLDING, ASSET INJECTION AND LISTED COMPANIES PERFORMANCE – EVIDENCE FROM CHINA SECURITIES MARKET

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Abstract

This paper aims to investigate the private placement of equity (PPE) by asset injection in China. It analyzes the influence to shareholders’ wealth and performance in the state-holding listed companies and private-holding listed companies. The key findings of this paper are the shareholders’ wealth and performance increased in the short-term, but decreased in long-term after announcement of asset injection by major shareholders. After asset injection, the state-holding listed companies experience larger decline in the long-term shareholders wealth and performance than private-holding listed companies.

Keywords: Asset Injection, International Corporate Governance, Private Placement of Equity, Shareholders’ Wealth, Tunneling, Related Party Transactions, China Securities Market

How to cite this paper: Zhang, T., Huang, H. J., & Hooper, K. (2014). Empirical study on the relationship among government holding, asset injection and listed companies performance – evidence from China securities market. Corporate Ownership & Control, 12(1-1), 169-179. https://doi.org/10.22495/cocv12i1c1p2