The Effectiveness in Regulation of Rights Issues:Evidence on Long-run Performance
WANG Liang-cheng1, SONG Juan2
1.School of Business,Sichuan University,Chengdu 610065,China; 2.Department of Price Administration and Supervision,Sichuan Development and Reform Commission,Chengdu 610012,China
Abstract The paper investigates the effectiveness of the regulation of rights issues in terms of direct and indirect effect,during the two different regulation periods,1999-2000 and 2001-2002. The evidence indicates that based on the accounting and stock performance after announcement of rights issue proposal approved by the board,China’s regulation of rights issues is generally approximately effective as the direct and indirect effect of the regulation,and the regulation of rights issue is stricter and more effective over time.
2013, Vol. 1 
