Capital market reaction to corporate restructuring announcements : an empirical test in the Shanghai Stock Exchange (SSE)

Abstract

The paper utilizes an event study to test whether there is an abnormal return from corporate restructuring announcements in the Shanghai Stock Exchange. We obtain data of abnormal returns and cumulative abnormal return using the Market Model. In the study two term event windows are applied, and after the t-test and bootstrap test, the relationship between the abnormal return and corporate restructuring announcements is confirmed.