Study On Preferences Of Pricing And Economic Consequences In China's Listed Firms Of Directional Private Placement

First,Research Background and Purpose.Directional Private Placement as split share structure reform, the results have been achieved to refinance a new way of equity after the emergence of China's capital market upon the introduction of markets would be favored .In recent years it has gradually become stake in China's capital market to refinance the mainstream and the general investment from the hot pursuit. From 2006 to 2007 within two years, China's listed firms through the capital market-oriented way to raise additional funds of up to more than 3600 million(in 2006 to 93.6 billion,in 2007 to 267 billion). It almost occupied in 2006 and 2007, the entire equity capital markets to refinance more than the amount of ninety discount.Overall, China's capital markets do not follow the classic Western "eating theory" before directional private placement manner has been formally launched. The extreme preference shares of the other means of refinancing (including a public issuance, allotment, etc.), and to the market transmission of a negative, a negative signal - that is, with negative short-term and long-term market reaction. Equity refinancing poor performance; equity refinancing is often listed as a listed company or the shareholders of the Company "Expropriation" tool. Directional Private Placement after the issuance of the formal launch of the way, they practice by domestic scholars and professionals concerned about the strong, the pricing process, there is a interesting phenomenon, namely, low-cost distribution preferences; In addition, whether equity refinancing and other means, the negative transfer to the market, the negative signal it? Directional Private Placement to the future operating performance of listed companies will have what kind of impact? With these questions, many domestic scholars to conduct a trial of its research and exploration, but by the time, data and other factors, the research is still in its infancy, did not form a system and conclusions of the research system. This paper intended to study the issue further to provide perspective with additional research from both theoretical and empirical point of view system. This paper gives implement the orientation of China's listed companies, in-depth study of the pricing of Directional Private Placement preferences and economic consequences of the two major aspects for future scholars , using the right stop for start.Second,Main Content.In this paper additional pricing orientation preferences and economic consequences of the two studies is the orientation of the current on the core issue of additional research.This paper studies and standardizes the use of a combination of empirical analysis methods and have analyzed the system of Directional Private Placement background and theoretical foundation of preferences and economic consequences of pricing and so on. This paper is divided into seven chapters, each chapter with the main conclusions are as follows:Chapter 1, Introduction. The main thesis of this chapter propose the research background, purpose and significance of study, research ideas and research with the framework and main contents of the main innovations .Chapter 2, Literature Review. This chapter, the main refinancing of domestic and international equity research at home and abroad on the orientation of the research literature for additional review and comment. among them. Mainly on the orientation of additional domestic and foreign pricing and economic consequences of the two major aspects of the research literature. On the one hand, acts on the refinancing equity research focuses on equity refinancing options, refinancing and to explain the two effects, the study results and the relatively rich and mature system, which in this article a comprehensive, systematic study directed by made the framework provided a good idea; On the other hand, acts on the Directional Private Placement research focused on the pricing of additional orientation, the economic consequences of the problem (including the market response and explanation, additional orientation to the future operating performance of listed companies in both the aspect of the impact of) the two elements, research results and a relatively small and decentralized systems, in particular, the study is to standardize the interpretation of the main analysis, less empirical research, which this article to expand and enrich acts directed additional studies provide an excellent opportunity.Chapter 3, The theoretical basis for the context and system. Some of the major use of the asymmetric information theory and agency theory framework and system of our country-specific background (ownership history of refinancing, the equity division reform, the overall market) on the orientation of additional mechanisms and economic consequences of pricing systems, in-depth analysis.The results showed that the system in our country-specific context, additional orientation exists in theory for a lower price to the transport interests of major shareholders, major shareholders to achieve the interests of shareholders against the possibility of small and medium-sized; However, this may not be market recognition, still has a positive market response as well as the future operating performance. Therefore, this paper argues that, in essence, an additional orientation is a "double-edged sword," only when the corresponding premise of the theory and system are met, in order to better play its role.Chapter 4, Study on the orientation of additional pricing mechanism. The chapter seeks to provide a theoretical analysis of the results of the above empirical evidence. In particular, the micro-analysis will be used to establish "balance the interests of shareholders" of the analysis model to explore the process of issue-oriented pricing of additional preference options, and on the basis of analysis of the impact of pricing preferences to choose a core element; in this based on evidence from the perspective of the final test of the additional process-oriented, balanced the interests of shareholders because of the game, to small and medium-sized shareholders against the benefits of the degree.Chapter 5, Study on the economic consequences of additional directional one: the market response. The first chapter describes the use of event study and analysis of additional targeted market has "declared" effect; Second, the use of multiple regression analysis of the market reaction they have with the company's liquidity needs and equity dilution of the concentration, and in order to explain the market reaction. The study on the orientation of our country's response to additional markets as an important complement to the interpretation.Chapter 6, Study on the orientation of the economic consequences of an additional two: Directional Private Placement performance of listed companies affected. The first part of the company targeted a total of three years after issuance of the operating performance to do a comparative analysis of the changes and found that after three years of Directional Private Placement the company's overall operating performance was rising; Secondly, after the issuance of the company directed the overall business impact of the performance of empirical analysis, we found the overall operating performance of the company's future orientation with the company's largest shareholder before the issuance of shares held, the issue object, Prospectus uses the type of asset into a significant positive related; the company's future operating performance and directed the overall object and inject the assets of additional types of cross-term significant positive correlation; the company's future overall business performance and additional object-oriented and the first large cross-shareholding ratio of negative correlation; the company's overall operating performance-oriented with the company before the issuance of asset-liability ratio, orientation of additional growth before the company a significant positive correlation, and of a detailed explanation and description.Chapter 7, The conclusion about this paper. Research conclusions and policy recommendations, research limitations and future directions worthy of further study and issues. The full text of this chapter is a general summary of conclusions. Mainly on three points: First, the main conclusion of the study summarized in this article, studies to clarify the limitations of this study summarized the main innovation and contribution; Second, the summary of this paper, the overall Directional Private Placement acts brought about by a number of Enlightenment Institute. Which are summarized as follows: share-trading reform is favored by the market orientation of the issuance of the most important cause of the system; Directional Private Placement is a true "double-edged sword." Subsequently put forward policy recommendations of this article; Third, acts of targeted additional direction for future research in future.Third,Main Innovation and Contribution.This paper attempts in the below aspect to from the characteristic and realize the innovation:(1) We found that China's capital market-oriented pricing mechanism is not an additional fair and reasonable based on the orientation of China's listed companies in the pricing mechanism of additional research."The issuance of securities of listed companies management"of the pricing system ninty percent discout rules and background of China's unique system, in particular equity focus on the governance structure of listed companies in China led to additional pricing mechanism targeted natural "imbalance." This will inevitably lead to additional targeted listed companies, the majority shareholder of a lower price to obtain more shares to dilute the interests of small shareholders.(2) Directional Private Placement is not fair and reasonable pricing mechanism directed between the issuance of the interests of all stakeholders in the re-allocation can achieve the interests of small shareholders against .Study, this article attempts to construct a measure of the pricing of Directional Private Placement preference shareholders of small and medium-sized impact on the future of the indicators of wealth Expropriation. The results showed that targeted additional unfair pricing mechanism for small and medium-sized shareholders of the future caused by the different levels of wealth occupying. This attempt to study for scholars in future research more accurate orientation of the benefits of additional or wealth losses against the idea or direction.(3)Through the issuance of the economic consequences of targeted research, We found that on the one hand, directed the issuance by the positive market reaction could be the need for liquidity and equity dilution concentration explained; On the other hand, directional after issuance of the operating performance of listed companies has improved significantly, and additional targeted operating performance of listed companies has improved significantly with the orientation before the first major shareholder additional share issue targeted into the type of asset, Prospectus use, distribution of assets and liabilities before the rate of growth of the company, there was a significant correlation between. Found these two, in theory, further enrich the theoretical study of the orientation of the literature of additional accumulation, the practice can be further clarified with additional targeted corporate governance, the overall market and the Directional Private Placement relationship between the system itself, in order to promote additional system-oriented Perfection, to improve corporate governance, promote the enterprise groups in order to achieve the overall orientation of additional market to provide theoretical and empirical evidence.(4) This paper can help the investors and the general goverment clearer understanding of Directional Private Placement is a "double-edged sword" of the substance based on the study pricing mechanism on the orientation of additional research and economic consequences, can think that the majority of the capital markets investors a more clear, accurate understanding of the additional conduct directed to lay a solid foundation, can also better goverment supervision, as well as additional targeted continuously improve the delivery of equity from the refinancing of ideas.