Skip to main content

Does consideration matter to China’s split share structure reform?

Buy Article:

$51.00 plus tax (Refund Policy)

Abstract:

Abstract

We investigate the share market response to China’s split share structure reform and find average negative daily return around the government announcement on 29 April 2005. However, there is a turnaround at individual companies’ decision to implement the reform where we find positive and significant average daily return, contingent on the type of consideration. We attribute this change in market sentiment to the company’s announcement that the reform will involve the payment of consideration to holders of tradable A‐shares. Our results also show that holders of tradable A‐shares earn significant abnormal daily returns when companies propose to pay in cash or warrants or combine any of these payment methods with bonus shares.

Document Type: Research Article

DOI: https://doi.org/10.1111/j.1467-629X.2011.00400.x

Affiliations: 1: Australian School of Business, University of New South Wales, Sydney, NSW, Australia 2: School of Accounting, University of Technology, Sydney, NSW, Australia

Publication date: 2012-06-01

  • Access Key
  • Free ContentFree content
  • Partial Free ContentPartial Free content
  • New ContentNew content
  • Open Access ContentOpen access content
  • Partial Open Access ContentPartial Open access content
  • Subscribed ContentSubscribed content
  • Partial Subscribed ContentPartial Subscribed content
  • Free Trial ContentFree trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more