Research On The Effect Of Equity Refinancing On A Company’s Performance

At present,China’s domestic securities market is still in the development stage.In addition to large sample empirical research,it is particularly important to introduce targeted case investigation and analysis.In this paper,the case study and empirical study are combined to choose a listed company with a large number of refinancing times and financing amount as the object of this study from a representative chemical industry,which has a stable proportion of the total amount of A-share market financing since the listing.Firstly,based on the performance evaluation index system of the state-owned capital evaluation system,the financial index system suitable for a listed company is constructed.Secondly,factor analysis method is used to extract factors from various indicators of the system by SPSS software,and the comprehensive scores of listed companies are calculated according to the factors.When comparing the performance changes of the case company before and after each financing,it is also compared with the average performance of other listed companies in the industry.It is found that the equity refinancing of a listed company has a negative impact on the company’s performance.Finally,combined with the performance of capital activities and benefits after equity refinancing of the case company,the paper analyzes the reasons for the performance decline of equity refinancing of company a from three aspects: irrational blind financing decision-making,inefficient use of raised funds and large shareholders’ reduction and arbitrage,and puts forward reasonable suggestions and measures: from the perspective of company a,strengthen the internal financing and investment management We should manage the mechanism,strengthen the analysis in advance,extend the period of asset sales restriction,improve the corporate governance structure,and prevent the arbitrage of shareholders.From the market point of view,we should improve the market system,strengthen market supervision and introduce the failure mechanism of issuance,so as to help the listed companies better improve their financing business and provide guarantee for the more effective implementation of refinancing in the future.It also provides some reference and guidance for the construction of China’s securities market.