Private Placement Discount of Chinese Listed Companies Based on the Perspective of the Investors’ Sentiment

Jun Yu (), Zhu-bao Wei (), Shu-zhen Wang () and Jing Tang ()
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Jun Yu: University of Hohai
Zhu-bao Wei: University of Hefei
Shu-zhen Wang: University of Hefei
Jing Tang: University of Hefei

Chapter Chapter 13 in The 19th International Conference on Industrial Engineering and Engineering Management, 2013, pp 121-130 from Springer

Abstract: Abstract This paper explored the main driving force of private placement discount based on the perspective of the investors’ sentiment. The results show that: (1) The private placement discount has been influenced by the dual effects of rational and irrational factors, but the irrational factors are the main driving force. Also, there is a significant positive correlation between investors’ sentiment and private placement discount: the more optimistic (pessimistic) the investors’ sentiment is the greater (smaller) the private placement discounts are. (2) Short-term excessive optimism of investors led to the phenomenon of the long-term vulnerable private placement market.

Keywords: Investors’ sentiment; Market effect; Overreaction; Private placement (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-38442-4_13

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DOI: 10.1007/978-3-642-38442-4_13

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