The Research Of Seasoned Equity Offerings Expropriation Based On The Causal Chain Analysis

The phrase"seasoned equity offering's (SEO) expropriation"is widespread among the Chinese security professions. And the investors have a misconception that all seasoned equity offerings are equivalent to expropriation as to deny the value of SEO in Chinese stock market. But we lack the in-depth understanding about SEO's expropriation. The existing literatures cannot entirely explain the poor underperformance of listed companies after SEO in China. So it is interesting to have a thorough analysis on the SEO expropriation. This research can help investors judge and analyze the characteristics of SEO's expropriation, help the Chinese security regulation authorities solve the SEO's expropriation, and develop the Chinese stock market.The main content of the dissertation includes two parts. The first part establishes theoretical models to explain how SEO evolve as expropriation and which is key factors in the SEO's expropriation. Then according the theoretical models, we put forward a causal chain analysis framework of SEO's expropriation. The second part is the empirical research to test the causal chain analysis, which is from motivation to action and from behavior to consequences. Then we test the effect of internal control and external environment on SEO's expropriation in order to mitigate SEO's expropriation. The main work and conclusion are as follows:(1) Construct the theoretical models of SEO to find the theoretical reason of SEO's expropriation.First, we construct the decision models of non-tradable shareholders, original tradable shareholders and new tradable shareholders during the SEO process, based on the analysis of their decision environments. It is pointed out that there is large difference of decision rights between the non-tradable shareholders and tradable shareholders. Then we analyze the effects of SEO key elements, such as SEO price and proceed, on the pay-off function of three types of shareholders, from the short-term view and long-term views. The optimized solutions and the condition of positive return are provided.The non-tradable shareholders always received positive returns both from the...