Equity transfers and market reactions: Evidence from Chinese stock markets

Lei Gao, Gerhard Kling

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)


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.
Original languageEnglish
Pages (from-to)293-308
Number of pages16
JournalJournal of Emerging Market Finance
Issue number3
Early online date1 Dec 2008
Publication statusPublished - 1 Dec 2008


  • equity transfers
  • mergers and acquisitions
  • market reaction
  • event study


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