Security regulations, access to the markets, and firm performance: Evidence from China

• Main Authors: CHENG, Qiang, WANG, Kun, Xiao, Xing
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Accounting; Asian Studies; Business Law, Public Responsibility, and Ethics
• Online Access: https://ink.library.smu.edu.sg/soa_research/1027
• Institution: Singapore Management University

In this paper we study the economic consequences of the security regulation in China that requires firms to meet certain profitability benchmark before they can apply for rights offerings or seasoned equity offerings (SEOs). We find that due to the lack of access to the equity financing market, firm...