Why Chinese Listed Firms Change the Use of Proceeds from Rights Issues ?

摘要

We examine whether the ownership structure accounts for the changes in the use of proceeds from rights issues based on a sample of 550 Chinese listed firms. We find that the changes in the use of proceeds from rights issues have nothing to do with the firm's future profitability, suggesting that Chinese managers change the use of the raised capital on the ground of other factors rather than the shareholders' value. We find that ownership structure matters for the changes in the use of proceeds from rights issues.