rights proposal of China’s stock markets coincides with Smith’s (1986) conclusion,
in that the rights issues have ‘bad’ news content. In contrast, the high-ratio rights
proposals partially refute Smith’s (1986) claim, since the high-ratio rights
proposals do not depress the stock prices for the entire investigation period.
Panel B of Table 8.4 reports the results of the parametric and non-parametric
t-tests at the event date. It can be seen that the t-values at the event date +1 are
below -1.96 or -2.58 for each sample. Since the date +1 is an alternative
announcement ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month, and much more.