| Summary: | 碩士 === 淡江大學 === 會計學系碩士班 === 94 === This study uses event study to investigate the effects on shareholder wealth, for both the announcing firm and its rivals, of the private common equity placements. We also try to identify two competing hypotheses: Information-signaling hypothesis and competitive hypothesis. And then we use regression models to determine what might cause dispersed intra-industry effect to private placement. The results show that announcers and its rivals experience significant negative cumulative abnormal returns, which indicate that the information signaling effect dominates the competitive effect. Additionally, we report that the announcement of private common equity placement have heterogeneous intra-industry effects. It is noted that announcers’ cumulative abnormal return and its private placement fraction have a significantly positive relationship with the abnormal returns of rival firms. Conversely, firm size has a significantly negative relationship with the abnormal returns of rival firms, but the purpose of private placement is partially supported. Overall, it can be seen that information signaling effects hold after other variables, that could affect the intra-industry effect of private placement, are controlled.
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