Valuation of restricted shares: Evidence from the split share structure reform in China

Jinlou Zhao*, Yifei Cheng, Lanlan Liu

*Corresponding author for this work

Research output: Chapter in Book or Report/Conference proceedingConference Proceedingpeer-review

Abstract

In order to test and evaluate the influence of split share structure reform, an event study model is used in this paper. By introducing the unique characteristics of Chinese split share structure and the reform on 29th April, 2005, the CAR (cumulative abnormal returns) model can rationally explain the positive and negative effects of the reform around and after announcement. This paper provides the theoretical foundation of possible influence of the reform, identifying the potential fundamental factors. The role of structure ownership (state and institutional investors) in corporate governance by examining the differences in the payment of compensation would be the further study.

Original languageEnglish
Title of host publicationProceedings of the 2012 5th International Conference on Business Intelligence and Financial Engineering, BIFE 2012
Pages370-373
Number of pages4
DOIs
Publication statusPublished - 2012
Externally publishedYes
Event2012 5th International Conference on Business Intelligence and Financial Engineering, BIFE 2012 - Lanzhou, Gansu, China
Duration: 18 Aug 201221 Aug 2012

Publication series

NameProceedings of the 2012 5th International Conference on Business Intelligence and Financial Engineering, BIFE 2012

Conference

Conference2012 5th International Conference on Business Intelligence and Financial Engineering, BIFE 2012
Country/TerritoryChina
CityLanzhou, Gansu
Period18/08/1221/08/12

Keywords

  • Event study
  • Privatization
  • Split share structre

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