The Empirical Research On Right Offer Of Chinese Listed Companies

Rights offer refer to the activity that the company carries on the following stock release finances. It always occupies the dominant position in SEO,which is helpful for listed corporate's healthy development. However, some irregular behaviors cause many people thinking of the right offer as gaining money by cheating. Why investors consider right offer bad news ? Why listed companies love right offer so much?This article analyzed how the market responds after right offer announcement , listed enterprise's achievement, the shareholder rights as well as interests value changes. Simultaneously the article proposed three universal serious issues, supporting for the standard to right offer behaviors with some evidences and theory. My basic viewpoint is that disfunctional corporate governance causes various questions,especially the equity structure.The article took the block stockholder's subscription level for right issue as one key signal . The first part proposed some questions, and elaborated listed companies favoring in rights financing .Then the next part carried on the right offer situation as well as the supervising and managing policy description in China .In the third part, I studied the announcement effect with two methods and obtains consistent conclusion. The article examined long-term operating performance over three years after right offer, at the same time compared right offered companies' performance and non-right offered companies' in part four. The fifth part discovered right offer bringing rich exceeds to the block shareholders, meanwhile explained why the market responsed to right offer negatively. Lastly the paper brought forward three main problems, and provided evidence as well as theory for standarding share matching behaviors.