Wealth effects of private equity placements: Evidence from Singapore

Sheng Syan Chen, Kim Wai Ho, Cheng Few Lee, Gillian H.H. Yeo

Research output: Contribution to journalArticlepeer-review


We examine institutional characteristics and the wealth effects of private equity placements in Singapore. Our findings show that private placements in Singapore generally result in a negative wealth effect and a reduction in ownership concentration. We find that at high levels of ownership concentration, the relation between abnormal returns and changes in ownership concentration is significantly negative. We also show that the market reacts less favorably to placements in which management ownership falls below 50%, but more favorably to issues to single investors. We do not find evidence suggesting that our results are due to an information effect.

Original languageAmerican English
Pages (from-to)165-183
Number of pages19
JournalFinancial Review
Issue number2
StatePublished - May 2002

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


  • Equity offerings
  • Ownership structure
  • Private placements


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