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Private placement, share prices, volume and financial crisis: an emerging market study

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dc.contributor.authorNormazia M.
dc.contributor.authorHassan, Taufiq
dc.contributor.authorAriff, Mohamed
dc.contributor.authorShamsher Mohamad Ramadili Mohd
dc.date.accessioned2016-06-06
dc.date.accessioned2016-07-25T20:05:47Z
dc.date.available2016-06-06
dc.date.available2016-07-25T20:05:47Z
dc.date.disclosure2016-06-10
dc.date.issued2013
dc.description.abstractFirms are increasingly resorting to private placements in recent years, yet there is no published study of emerging markets. There is a unique opportunity to study this behavior during a severe financial crisis, when firms resorted to private placements to recover financially distressed firms. Our analysis using data over fifteen years shows (a) a significant 2–3% positive share price reaction, affirming asymmetric information effect, (b) a significant volume activity, and (c) the price impact is different across a period of a major financial crisis. If the proceeds from placement are earmarked for investment, share price is negatively (positively) correlated during the crisis (non-crisis) periods. Our finding on regulation is inconsistent with prior reports in developed markets: this is explained by the stricter restrictions on trading of private issues in emerging market. These results provide modest new contributions to the literature on private placements.
dc.identifier.citationNormazia, M., Hassan, T., Ariff, M., & Ramadili Mohd, S. M. (2013). Private placement, share prices, volume and financial crisis: an emerging market study. Global Finance Journal, 24(3), 203-221. https://doi.org/10.1016/j.gfj.2013.10.003
dc.identifier.doihttps://doi.org/10.1016/j.gfj.2013.10.003
dc.identifier.urihttps://ikr.inceif.edu.my/handle/INCEIF/1417
dc.languageEnglish
dc.language.isoeng
dc.publisherElsevier
dc.rights2013. Elsevier
dc.sourceCRP
dc.subjectPrivate placement
dc.subjectWealth and volume effect
dc.subjectFinancial crisis
dc.subjectOwnership concentration
dc.subjectInformation asymmetry
dc.subjectLong run performance
dc.titlePrivate placement, share prices, volume and financial crisis: an emerging market study
dc.typeJournal Article
dlc.maintopicConventional finance
dlc.subtopicEconomics
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicConventional finance
ikr.topic.subtopicConventional finance
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relation.isAuthorOfPublication.latestForDiscovery33b91dde-0170-454c-8f2b-ec4b208837b9
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