Shareholder Participation and Wealth Transfers Associated with Open Offers in Hong Kong
2018/12/18
研討會日期 : 2018-12-18
時間 : 14:30
主講人 : Professor Wai-Ching Poon (潘慧菁)
主持人 : Professor Deng-Shing Huang
地點 : Conference Room C103
演講者簡介 : Professor Poon received her Ph.D. from the University Putra Malaysia in 2007. She is currently an Associate Professor at Monash University. Her research interests include Applied Economics, Economic Growth, Consumer economics, Inflation Targeting, Environmental Issues, Firm performance and corporate governance, Higher Education study.
演講摘要 : This study investigates the shareholder participation and wealth transfers associated with open offers as a type of rights offerings without tradable rights in Hong Kong. Compared with the results in the US where rights offerings are uncommon, open offers in Hong Kong where rights offerings are popular have slightly higher shareholder participation but far larger wealth transfers from nonparticipating to participating shareholders. This result rules out that the disappearance of rights offerings in the US is due to low shareholder participation and high wealth transfers. While greater expected wealth transfers lead to more negative announcement returns, this study for the first time finds evidence to reduce wealth transfers through the better underwriter certification provided by the largest shareholders, the adoption of oversubscription privilege, and the avoidance of the CEO-chairman position simultaneously held by the largest shareholders. Our empirical result also indicates that what matters in explaining the announcement effects of open offers are expected wealth transfers and expected take-up, and the negative effect of the expected wealth transfer on announcement returns is weaker when there is a large shareholder take-up.
