Study Of Refinancing Scale Of Listed Companiesand Market Effects

Financing which is the main purpose for listed companies includes two kinds of fundamental modes, namely first-time financing and refinancing. Refinancing of listed company consists of share allotment, seasoned equity offering and convertible bonds. From the perspective of behavior mode, refinancing is the behavior of repaying the due debts or expanding the scale of investment after IPO by raising funds through the above three ways. There are no differences between financing and refinancing in foreign capital markets. Therefore, Chinese A share market (Shanghai and Shenzhen stock market) is an appropriate sample for researching refinancing.There are three main problems for the listed companies of China in refinancing. First, the way of financing is mainly equity financing, which is too single. Second, the capital amount of refinancing is larger than the amount that listed companies actually need, and the usage of refinancing capital is blind and uncertain. Lastly, the utilization efficiency of refinancing capital and its economic performance are too low. It is therefore of great theoretical value and realistic significance to do research on these problems. Reasonable usage of refinancing capital can optimize the allocation of resources of securities market. The determination of refinancing scale, structure and proportion is a sufficient and necessary condition for improving refinancing performance, which is based on scientific knowledge about the rule of refinancing performance.Domestic and overseas research of financing or refinancing for the listed companies focuses mainly on the relationship between structure of stock right and enterprise operation performance. However, there is little research literature on the refinancing market effect, whose research starting with refinancing scale of the listed companies. The motives and objectives of the listed companies' refinancing are generally "raising capital" rather than the productive investment scale, hence the using of the capital is inevitably not normative, which eventually weakens the enterprises' ability to earn profits, therefore it is very difficult to make the refinancing performance become positive. Different form the research before, this paper extends the research area of refinancing issue into the scale and its market effect. The so-called market effect of the listed companies' refinancing includes static effect and dynamic effect. The static effect means the effect of the listed company's performance resulting from their refinancing. It is measured by two ways. One is internal performance, that is, the effect of refinancing on capital structure and its output profits. This effect mainly means the scale income effect and profitability effect of refinancing. The other is external performance or market performance, that is, the efficiency of the three refinancing modes. It measures the listed companies' financing and the relative income in a short period of time - the shortest time effect and the maximum capital income effect of the listed companies' refinancing. The dynamic effect means the dynamic response of listed companies, securities supervision authorities and the persons who buy and sell stocks. It is also measured in two aspects. One is the evolutionary game response of the listed companies and the persons buying and selling stocks; the other is the evolutionary game response of the listed companies and securities supervision authorities.According to the definitions above, the logic train of thought of this paper on the market effect of refinancing has been concluded. First, from the perspective of listed companies, this paper analyzes one of the static market effect forms of refinancing - the internal performance, that is, to recognize capital deposit scale and structure of listed companies, and analyze its scale income effect and the profitability effect. Then the paper compares the profit-earning ability of the three kinds of refinancing. Secondly, the author further from the standpoint of listed companies analyzes the second form of the static market effect of refinancing - the external performance (also called market performance), that is, to measure the market trading efficiency in the three forms of refinancing, to identify that in how short a time listed companies can spend to raise capital and earn profits accordingly, thereby revealing the basic preferences of listed companies for refinancing and their functions. Lastly, from the viewpoint of market, the paper analyzes the dynamic market effect of the listed companies' refinancing, the author uses the evolutionary game methods to discuss the "three-dimensional game" relationship among refinancing of listed companies, investors and supervisory institutions, on this basis, the paper analyses respectively the characteristics of their behavior direction. The paper mainly puts forward the supervision strategies of the government over the refinancing of listed companies and the re-supervisory strategies over the securities supervisory departments, explains the game behavior and effect of the three parties from the process.