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postgraduate thesis: Roles of non-institutional investors in private placements

TitleRoles of non-institutional investors in private placements
Authors
Issue Date2016
PublisherThe University of Hong Kong (Pokfulam, Hong Kong)
Citation
Law, Y. [羅仁杰]. (2016). Roles of non-institutional investors in private placements. (Thesis). University of Hong Kong, Pokfulam, Hong Kong SAR. Retrieved from http://dx.doi.org/10.5353/th_b5760968
AbstractI study the announcement returns and the post-placement performance by looking at the identities of investors in the private placements. I find that the participations of individual investors and the management are crucial and associated with significant positive announcement returns of 3.5% and 6.3% respectively, after controlling the firm characteristics and placement terms. Portfolios forming according to the participations of the individual investors and the management generate significant positive weekly alphas of 0.25% and 0.34% respectively, which is equivalent to 13.9% and 19.3% annually. The effects are consistent for the announcement returns and post-placement performance, under the explanation of monitoring hypothesis and certification hypothesis. The findings suggest that the non-ins6tu6onal investors are better informed and their participations provide better certification effects on the stock price. Management participation further improves the post-placement performance by reducing the agency cost. Participation of individual investors improves the post-placement performance by better monitoring, with mere participation of other institutional investors. I also find that the number of institutional investors participated in the placements has a negative effect on the announcement returns, suggesting the increase in the number associates with little certification and hinders the monitoring by creating a free-rider problem. All the results are robust to the choice of estimation models.
DegreeMaster of Philosophy
SubjectIndividual investors
Privately placed securities
Dept/ProgramEconomics and Finance
Persistent Identifierhttp://hdl.handle.net/10722/226787

 

DC FieldValueLanguage
dc.contributor.authorLaw, Yan-kit-
dc.contributor.author羅仁杰-
dc.date.accessioned2016-06-30T04:24:10Z-
dc.date.available2016-06-30T04:24:10Z-
dc.date.issued2016-
dc.identifier.citationLaw, Y. [羅仁杰]. (2016). Roles of non-institutional investors in private placements. (Thesis). University of Hong Kong, Pokfulam, Hong Kong SAR. Retrieved from http://dx.doi.org/10.5353/th_b5760968-
dc.identifier.urihttp://hdl.handle.net/10722/226787-
dc.description.abstractI study the announcement returns and the post-placement performance by looking at the identities of investors in the private placements. I find that the participations of individual investors and the management are crucial and associated with significant positive announcement returns of 3.5% and 6.3% respectively, after controlling the firm characteristics and placement terms. Portfolios forming according to the participations of the individual investors and the management generate significant positive weekly alphas of 0.25% and 0.34% respectively, which is equivalent to 13.9% and 19.3% annually. The effects are consistent for the announcement returns and post-placement performance, under the explanation of monitoring hypothesis and certification hypothesis. The findings suggest that the non-ins6tu6onal investors are better informed and their participations provide better certification effects on the stock price. Management participation further improves the post-placement performance by reducing the agency cost. Participation of individual investors improves the post-placement performance by better monitoring, with mere participation of other institutional investors. I also find that the number of institutional investors participated in the placements has a negative effect on the announcement returns, suggesting the increase in the number associates with little certification and hinders the monitoring by creating a free-rider problem. All the results are robust to the choice of estimation models.-
dc.languageeng-
dc.publisherThe University of Hong Kong (Pokfulam, Hong Kong)-
dc.relation.ispartofHKU Theses Online (HKUTO)-
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License-
dc.rightsThe author retains all proprietary rights, (such as patent rights) and the right to use in future works.-
dc.subject.lcshIndividual investors-
dc.subject.lcshPrivately placed securities-
dc.titleRoles of non-institutional investors in private placements-
dc.typePG_Thesis-
dc.identifier.hkulb5760968-
dc.description.thesisnameMaster of Philosophy-
dc.description.thesislevelMaster-
dc.description.thesisdisciplineEconomics and Finance-
dc.description.naturepublished_or_final_version-

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