Empirical study on the relationship among government holding, asset injection and listed companies performance : evidence from China securities market

Abstract

This paper aims to investigate the private placement of equity (PPE) by asset injection in China. It analyzes the influence to shareholders’ wealth and performance in the state-holding listed companies and private-holding listed companies. The key findings of this paper are the shareholders’ wealth and performance increased in the short-term, but decreased in long-term after announcement of asset injection by major shareholders. After asset injection, the state-holding listed companies experience larger decline in the long-term shareholders wealth and performance than private-holding listed companies.