Stock Allotment Of Listed Company And Research On The Change Of Firm Performance

Stock allotment is considered as an achievable means of refinancing with low cost. For this reason, the listed companies manipulate reporting earnings in order to obtain equity offers. Begin with the investigation on the whitewash of return on equity by listed companies, we try to prove that listed companies tend to manipulate earnings for acquiring equity offers. The statistical analysis of ROE of listed companies in Shenzhen Stock Market is made before and after the alteration of Stock Allotment Policy. We also verified the change of performance of those listed companies that implement stock allotment. By comparing the performance in different periods, we find the real causes that affect the performance of listed companies.This paper is classified into five parts. The first part is to put forward the question; the second part introduces theories concerned with the performance after refinancing, and then demonstrates the research methods of this paper. The third and fourth parts are empirical study respectively on manipulation of earnings and performance after refinance. In the fifth part, some suggestions for avoiding the downslides of performance after stock allotment are given on the basis of the analysis and conclusions of this paper.