Webinar Series #2: Analytical Methods in Law and Economics
About the webinar series
In this webinar series, law and economics scholars will present their current research project and also guide the audience through the analytical techniques used in their research. The series aspires not only to be instructive for the entry-level researchers and graduate students, but also to be informative for more established scholars. The time duration is one hour, including a Q&A period.
Topic: “Mandatory Bids in China: You Can Lead a Horse to Water, But You Can’t Make It Drink”
The mandatory bid rule is prevalent across jurisdictions of both civil law and common law traditions. Yet empirical evidence about its functioning is rare. This paper studies mandatory bids in China against an institutional backdrop of restrictive IPO requisites. We find that virtually no shares held by external shareholders are tendered in mandatory bids for all the remaining shares. Mandatory bidders’ tactics to avoid tendering by public investors include pressing down their bid prices, and potential manipulation of target stock prices. In relation to economic impacts of mandatory bids, we document that market responds favourably to their announcements, and that targets’ operational performance improves in their wake, consistent with the theoretical prediction that mandatory bids induce efficient transfers of corporate control. Our research is among the earliest empirical works on the mandatory bid rule in a particular jurisdiction. It not only yields interesting results pertaining to the unique Chinese regulatory environment, but also generates useful insights about mandatory bids beyond China.
Presenter: Professor WEI ZHANG, Singapore Management University, Yong Pung How School of Law
Zhang Wei is an Associate Professor and the Associate Dean of the Yong Pung How School of Law at the Singapore Management University. He received his basic law degree from Fudan University, his Masters in Laws degrees from Waseda University and Harvard Law School. He earned his Ph.D. in Jurisprudence and Social Policy from UC Berkeley. His main research areas include corporate and securities law, property law and Chinese law. He has published widely on these topics in both English and Chinese.
Time: 6pm, Aug 18., 2021 (Wed)