TITLE:
A Research on the Motives and Economic Consequences of the Executives’ Subscription in the Private Placement —A Case Study of Zhejiang Hangxiao Steel Structure Co. Ltd.
AUTHORS:
Xiao Wei
KEYWORDS:
Private Placement, Subscription of Senior Executives, Market Timing, Harvard Financial Analysis Framework, Zhejiang Hangxiao Steel Structure Co. Ltd. (“HXSS”)
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.6 No.6,
June
24,
2016
ABSTRACT: Nowadays, more and more executives and controlling shareholders of the listed companies inject funds through private placement, and what is the motivation? In different market quotation, did enterprises have existed market timing in the private placement, did shareholders have tunneled their way to send interest to themselves from the listed company through market timing? And what are the factors that affect the proportion of senior executives’ subscription? In this paper, based on the case of the directional private placement to senior executives of Zhejiang Hangxiao Steel Structure Co. Ltd. (shorted for “HXSS”), we have studied the motivation of directional private placement to senior executives, and we have further analyzed market timing and the market reaction after the private offering.