The t-statistics in Panel B of Table 8.5 report that both the parametric and
non-parametric t-values are larger than +1.96 or +2.58 at the event date 0 for every
sample, which demonstrates that the stock prices react positively to the
announcement of rights approvals at the 5% or 1% significance levels. Recalling
the opposite results on the announcement of rights proposals, the stock prices react
negatively to the announcement of rights proposals at the same significance levels.
The Chinese shareholders consider rights issues to be ‘bad’ news when they are
proposed and ‘good’ news when they are approved.
The ...
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