نوع مقاله : مقاله پژوهشی
عنوان مقاله English
نویسندگان English
Rights offering is the main equity financing method in the secondary market by listed companies in Iran . Rights are traded for a pre-determined period and subsequently, rights whose shareholders do not participate, are auctioned off by an underwriter . We find evidence of extensive price manipulation by blockholders during the rights offerings on the Tehran Stock Exchange (TSE) . Specifically , we find that blockholders on average sell between 1 - 2 percent of shares outstanding during the rights trading period, which leads to significant drop in stock and rights prices . This allows them to purchase rights from non-participating shareholders at a discount, which in turn leads to wealth transfer from non-participating shareholders, usually retail investors, to the blockholders . Our findings contribute to our understanding of the conflict between blockholders and minority shareholders and the methods of tunneling by large shareholders in markets with weak legal protection .
کلیدواژهها English
