The Empirical Study On Relationship Between Seasoned Equity Offerings And Corporate Long-run Performance

Companies use the capital market through SEO to get the funding they need to meet their development. We concern whether these funds are misappropriated when the funds are obtained by these companies, whether these funds would have been reasonable to use and whether these funds affect the company's long-term performances.This paper selects the successful implementation companies of SEO in shanghai and Shenzhen stock exchange between 2001 and 2002; at the same time, we just select A-share. These dates will be used as the samples before share structure reforming.We select the dates between 2006 and 2007 as the samples after share structure reforming. There are 422 samples.The paper proposes five hypotheses.We test the long-term accounting performance and the long-term rate of return performance. On this basis, we do the further regression analysis.The first part is an introduction. This section will introduce the background and questions of the research, theoretical and practical value. Meanwhile, this section will review the relevant literature to understand the status of domestic and foreign research. Finally, we will introduce the paper's structure and research methods.In the second part, the paper will review the theories about relationship between SEO and Corporate Performance, including SEO, share reform and other related concepts. In addition, we do some analysis from angle of earnings management, measuring and scale effects.In the third part, we do the descriptive statistical analysis between SEO and long-term performance. In this section, we do something about research hypothesis, data and variable selection. Then we do the descriptive statistical analysis about issuance of shares and allotment. In the end, we will do the horizontal comparison. In the fourth part, the paper does the empirical analysis on the relationship between SEO and long-term performance. First, creating the model of SEO and doing regression analysis. Then explain the empirical results, respectively. Through the above analysis, we get some conclusions.Based on the results of empirical research, in order to regulate SEO behaviors and improve the role of securities market, this paper proposes some policy recommendations, such as deepening the market reforms, strengthening corporate governance structure, norming SEO policy.