Notice of RetractionInternal Capital Markets, Performance after Rights Issue and Investors Protection: Evidence from China

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Existing researches show that internal capital markets have a significant influence on financing behavior of firms. From the perspective of interaction between internal and external capital markets, this paper studies the influence of internal capital markets on the operational and market performance of listed companies after rights issue. We find that the opportunistic manipulation of internal capital markets by majority shareholders is one of the most important factors that cause the continuing deterioration of operational and market performance of listed companies after rights issue, which destroy the interest of minority shareholders.