Effects of Stock Open-End Fund Holdings on Equity Issuance Intention: Evidence from Chinese Securities Market

Abstract

With the sample semi-annual data of the stock open-end fund and equity issuance information from July 2005 to December 2012 in China, the effect of open-end fund holdings on the equity issuance intention is studied by using logistic regression methods. The empirical results show that: equity issuance intention has relationship with whether the stock is held, After controlling BM, leverage, asset growth, ROA, Cash etc., the share holding ratio of funds are positively related to the equity issuance intention, The positive effect of buying pressure from funds with larger capital inflow on equity issuance intention is statistically significant.