The Contagion Effect Of The Privatization Of The Overseas-listed Chinese Firms On American Stocks

A lot of overseas-listed Chinese firms on American stocks privatized in 2015.This was another privatization peak since 2011.We all want to know the TIME for this phenomenon.And since the privatization of company will push the price up,people are thinking about who would be the next one?What will be the privatization price?This Article has many new ideas.This article first analyses the theory of the privatization of overseas-listed Chinese firms on American stocks and the contagion effect.Then introduces the basic circumstances of the American-listed Chinese firms.Why they want to privatized?What steps should they do?And what should be take care of to avoid the disputes.This article selected nine typical privatization companies from 2012 to 2015 June as a research event,using event study to verify whether the delisting events have contagion effect on other company's share price.And which factors make the results different.According to the empirical discovery process,we found that an American-listed Chinese company's privatization had a significant positive impact on the other ones.The generate excess return has the positive correlation with whether the two companies in the same industry?the company's quality of information disclosure and the time.The generate excess return has the positive correlation with the asset size of the company.Finally,in view of the results,this paper gives some advice to investors?businesses and regulator.Hope everyone can make better decisions.