Where Would Refinancing Preferences Go?

  • Yajun Chai
  • Bo Liu
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 6124)


We study the relation between the non-tradable shares reform and the refinancing preferences. From the viewpoints of change in market and policy environments led by the reform, we find that right issues dominate before the reform, however, public offerings (including private placement) dominate after reform, which could be attributed to more money encirclement induced by the shift of the public offering mechanism from in discount to in premium after reform and no requirements for large shareholders’ participation commitments in public offerings.


non-tradable shares reform refinancing preferences refinancing 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  • Yajun Chai
    • 1
  • Bo Liu
    • 1
  1. 1.School of Management and EconomicsUniversity of Electronic Science and Technology of ChinaChengduChina

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