Our logit models explain positive or negative short–term market reactions due to equity transfers in China. In contrast to former studies, we classify transfers into private transactions, privatisations, transfers among state–owned enterprises (SOEs) and nationalisations. We control for uncompensated transactions, transfers of holding rights, replacements of the CEO and related party transactions. Privatisations trig–ger positive responses, whereas nationalisations cause declining stock prices. The market appreciates reforms in the state–owned sector if reorganisations include the transfer of holding rights and not just replacing the CEO. Uncompensated transfers and non–transparent transactions of related parties diminish gains for minority shareholders.
Andrade, G. , M. Mitchell and E. Stafford (2001), ‘ New Evidence and Perspectives on Mergers ’, Journal of Economic Perspectives, 15(2): 103–20 .
2.
Armitage, S. (1995), ‘ Event Study Methods and Evidence on their Performance ’, Journal of Economic Surveys, 9(1): 25–52 .
3.
Brown, S.J. and J.B. Warner (1980), ‘ Measuring Security Price Performance ’, Journal of Fi–nancial Economics, 8(3): 205–58 .
4.
Brown, S.J. and J.B. Warner (1985), ‘ Using Daily Stock Returns: The Case of Event Studies ’, Journal of Financial Economics, 14(1): 3–31 .
5.
Chen, G. , M. Firth and O. Rui (2006), ‘ Have China's Enterprise Reforms Led to Improved Efficiency and Profitability? ’, Emerging Markets Review, 7(1): 82–109 .
6.
Chen, X. and H. Yuan (1998), ‘ Financial and Accounting Investigation of the Asset Recon–struction of Listed Firms ’, China Accounting Research, 19(10): 13–22 .
7.
Chen, X. and T. Zhang (1999), ‘ Market Reaction of Asset Reconstruction: Empirical Investiga–tion of Asset Reconstruction of the Shanghai Stock Market in 1997 ’, Economic Research, 34(9): 47–55 .
8.
Feng, G. and L. Wu (2001), ‘ Empirical Investigation of Chinese Listed Companies’ M&A Performance ’, Economic Research, 36(1): 54–61 .
9.
Gao, J. and X. Chen (2000), ‘ Analysis of the Effect of Asset Reconstruction at the Chinese Security Market ’, Economic Research, 35(1): 66–71 .
10.
Gao, L. and G. Kling (2005), ‘Calendar Effects in Chinese Stock Market ’, Annals of Economics and Finance, 6 (1): 75–88 .
11.
Ikenberry, D. and J. Lakonishok (1993), ‘ Corporate Governance through the Proxy Contest: Evidence and Implications ’, Journal of Business, 66(3): 405–36 .
12.
Jarrell, G. , J. Brickley and J. Netter (1988) ‘ The Market for Corporate Control: The Empirical Evidence Since 1980 ’, Journal of Economic Perspectives, 2(1): 49–68 .
13.
Jensen, M.C. and R.S. Ruback (1983), ‘ The Market for Corporate Control: The Scientific Evidence ’, Journal of Financial Economics, 11(1): 5–50 .
14.
Keown, A.J. and J.M. Pinkerton (1981), ‘ Merger Announcements and Insider Trading Activity: An Empirical Investigation ’, Journal of Finance, 36(4): 855–69 .
15.
Kim, E.H. and V. Singal (2000), ‘ Stock Market Openings: Expectations of Emerging Economies ’, Journal of Business, 73(1): 25–66 .
16.
Kling, G. (2005), ‘Chinese Institutional Investors and Kamara's Monday Effect ’, Journal of Emerging Markets, 10 (3): 40–47 .
17.
Kling, G. and L. Gao (2008), ‘ Chinese Institutional Investors ’ Sentiment’, Journal of Inter–national Financial Markets, Institutions and Money, 18(4): 374–87 .
18.
Li, S. and Y. Chen (2002), ‘ The Fortune Effect of M&A of Listed Companies ’, Economic Research, 37(11): 27–35 .
19.
Martin, K. and J. McConnell (1991), ‘ Corporate Performance, Corporate Takeovers and ManagementTurnover ’, Journal of Finance, 46(2): 671–87 .
20.
Morck, R. , A. Shleifer and R. Vishny (1989), ‘ Alternative Mechanisms for Corporate Control ’, American Economic Review, 79(4): 842–52 .
21.
Morse, D. (1984), ‘ An Econometric Analysis of the Choice of Daily versus Monthly Returns in Tests of Information Content ’, Journal of Accounting Research, 22(2): 605–23 .
22.
Schwert, G.W. (1996), ‘ Markup Pricing in Mergers & Acquisitions ’, Journal of Financial Economics, 41(2): 153–92 .
23.
Sun, Z. and Y. Wang (1999), ‘ Empirical Investigation of Resource Allocation and Surplus Manipulation ’, Research of Finance and Economics, 25(4): 49–53 .
24.
Yuan, H. and X. Wu (1998), ‘Empirical Investigation of the Impact of Asset Reconstruction of Financial Performance’, Shanghai Security Newspaper, 26 August.
25.
Yu, G. and L. Yang (2000), ‘ Theoretical and Empirical Study on Stock Market Performance of Chinese Companies’ M&A’ , Contemporary Finance and Economics, 21(7): 70–74 .
26.
Wu, L.and Y. Bai (2004), ‘ Company's Value and the Ways of Control Right Transfer ’, Man–agement World, 20(9): 123–30 .
27.
Zhang, X. (2003), ‘ The Sustainability of China's Economic Growth from the Viewpoint of Listed Chinese Companies’ Performance ’, Comparison of Economic and Social Systems, 37(1): 41–48 .
28.
Zhu, B. and W. Yikai (2002), ‘ Analysis of the Impact of Chinese Listed Companies ’ M&A in 1998’, Economic Research, 37(11): 20–26 .
