The Secondary Equity Offering Of China's Listed Companies: Rights Offering Or Secondary Public Offering

Extended reproduction is the necessary way of enterprise's existence and development in modern economy conditions. Furthermore, along with the larger enterprise scale and the deeper multi-industry, enterprise payoff that accumulates by them cannot full fill the requirement of enterprise development any longer. So whether enterprise can obtain funds from outside has become the key "bottleneck". Especially, in our country that was short of production capital, the difficulty of enterprise's financing always constrains the economy entire development and affects directly all kinds of departments and enterprise. It means that enterprise's financing from outside is the problem that deserves research deeply.With the latest booming of the stock market of China, the refinancing behaviors of corporations are becoming increasingly more popular, particularly huge refinancing. Responding to such refinancing, on which investors have kept very closing eyes, they really care about the amount and usage of the money. For an instance, the huge refinancing of PingAn of China and Shanghai Pudong Development Bank in the bull market have made the market index collapsed a great deal, as the consequence of which the index had no longer go up as before. For such phenomenon of the stock market, extensive researches have been carried out, as well as a great number of fruitful achievements. Following the ways of such brilliant scholars doing their researches, from the perspective of two main methods of secondary equity offering(SEO) in China's capital market, secondary public offering and rights offering, this dissertation analyzes the definite factors which influence the choice of SEO methods of listed companies, then investigates the question of secondary equity offering(SEO) in China's stock market.At the very first, there is a brief introduction the related studies of the factors which influence the methods of SEO. Secondly, this dissertation reviews the policy and evolution process of SEO in China. And then introduce the status of SEO of China's listed company. Thirdly the dissertation uses Logit regression to investigate the definite factors which influence the choice of SEO methods of listed company, which are successfully implemented SEO in A stock market during 2006 to 2009 in China.The results show that: First of all, variables which based on the possibility of bankrupt cannot pass the empirical test. Secondly, if the listed companies which have low growth, high proportion of nonnegotiable shareholders, and low expected number of shares of SEO are inclined to use secondary public offering to collect equity capital. Thirdly, the influences of nonnegotiable shareholders are more important than the influences on negotiable shareholders in SEO respect.In the end, on the basis of the conclusions, this dissertation analyzes the phenomenon of choice of SEO methods of listed companies in China's stock market from the present policy and system respect, and points out that an effective way is continue to deepen the reform of non-tradable shares, to improve the company governance system, to accelerate the development of bond markets, to build diversified refinancing system of listed company.