The impact of private placement announcement on short-term stock returns

• Main Authors: Yu-Han Chen, 陳祐涵
• Other Authors: 林盈課
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/75374228508043430062

碩士 === 國立中興大學 === 財務金融系所 === 96 === The complete policy of private placement has been introduced in Taiwan in 2002; since then, more and more public companies choose private placement to raise capital. Private placement is expected to improve companies and provide a more convenient way to raise funds, however, some people only want to exploit private placement to get abnormal shot-term stock returns. The study compares the abnormal shot-term stock returns between samples of private placement success and failure. The study also provides information on abnormal shot-term stock returns in different events of private placement success samples. The event dates in this study are based on the Market Observation Post System of Taiwan stock exchange during 2003-2008. The conclusion of this study shows that there are significantly positive average abnormal returns on the event dates for both private placement successful and failed samples. Private placement failure samples have continuously positive cumulative average abnormal returns in 59days before the event date; there is a possibility of insider trading. There are no significantly positive cumulative average abnormal returns in joining other Private placement company samples. Moreover, significantly positive cumulative average abnormal returns in private placement successful samples were shown in the period 45 days prior to the event date and 20 days after. When facing the private placement event announcement, the market investors are uncertain whether or not the companies will be able to accomplish the private placement in one year. The study is intended to provide investors more information and give them analytical event results.