Cheung, William; Lam, Keith S.K.; Tam, Lewis H.K. - In: Pacific-Basin Finance Journal 20 (2012) 3, pp. 459-482
We examine the impact of blockholding on shareholders' wealth in equity offerings in China. We find that investors … generally react negatively to equity-offering announcements by firms with high blockholding. A one-standard-deviation (12 …%) increase in blockholding leads to a 0.59% reduction in firm valuation over a seven-day window and a 5.50% reduction over a 2 …