科学研究

Zhongzhi Song, currently an associate professor of finance at Antai College of Economics and Management, Shanghai Jiaotong University, graduated from the University of British Columbia (UBC) in Canada in 2011 with a Ph.D. in finance. He used to work at Cheung Kong Graduate School of Business. His main research interests include: Asset pricing, techology and macro-finance, and the Chinese capital market. His research papers have been published in international academic journals such as Review of Finance, Management Science, Journal of Financial Economics, and Journal of Financial and Quantitative Analysis. His research won the Best Paper Award for Doctoral Students at the 2010 Northern Finance Association (NFA) Annual Conference and the Best Paper Award at the 2022 China International Conference in Finance (CICF). He also won the Best Discussant Award at the 2023 Journal of Finance and Data Science Conference (JFDS).

This paper examines the effectiveness of preemptive rights in protecting minority shareholders, drawing on new issuances by Chinese listed firms spanning from 2006 to 2022. The evidence reveals that, on average, only 62% of shareholders exercise their preemptive rights despite an 18% issuance discount, resulting in wealth losses of 6% of issuance amount for non-participating shareholders. More importantly, minority shareholders suffer greater wealth losses because they lack sophistication and face extra constraints in exercising their rights compared to controlling shareholders. These findings call for additional policy safeguards, such as rights transferability and controlling shareholders' pre-commitment, to enhance minority shareholder protection.