Research On Refinancing Methods And The Performance Of Chinese Listed Companies

The research on financing behavior has been the main content of capital market research. In China, the research is focus on three areas: financing preference,the relationship of financing structure and enterprise value, and the relationship of refinancing and enterprise performance. The first two of them have been studied in depth. As for the research on refinancing and enterprise performance, however, it left much room for analysis. So, having refinancing as the core this paper gives a comprehensive analysis.In the aspect of refinancing, the published papers in this aspect are mainly about what kind of influence of rights offering and seasoned equity offering may have on the enterprise performance. But they lack of whole and long-term viewpoint. This essay compare the change of the enterprise performance of the listed companies before and after the refinancing (rights offering,seasoned equity offering,issuing convertible bonds ). Also, it makes some comparative analysis of the three method of refinancing to figure out the financing efficiency and effects on enterprise performance of different methods.On the basis of making some summarization of the papers about financing problem of listed companies, the essay elucidates the theory of financing of listed companies from the points of capital structure,asymmetric information,corporate control,irrational activities. Then, it analyses the policy evolution of the three main methods of refinancing and the present situation of the listed company refinancing, and gives the characteristics and the forming reasons of refinancing of listed company in China. Last, the accounting performance and market return rate are tested before and after refinancing by rights offering,seasoned equity offering and issuing convertible bonds. Test of significance is also made to compare the three refinancing methods.Through the analysis of them, some conclusion is made. Accounting performance index is downward after refinancing by either method. The company refinancing by rights offering have a significant declination from the first to the third year of rights offering. In the company which refinancing through seasoned equity offering, the declination is absent just in the first and second year of refinancing and then there are no significant declination in the following years. However, there is no such big declination in the company refinancing by issuing convertible bonds. The CAR and BHAR had a fluctuation after refinancing by rights offering or seasonedequity offering, and the market responses were alternate. On the contrary, the company refinancing by issuing convertible bonds have a slow upward CAR and BHAR after refinancing. So, refinancing by issuing convertible bonds is better than rights offering and seasoned equity offering.So, the listed companies should make use of multiple ways for refinancing and rely on the development of market. Also, the administration of the funds should be strengthened and the evaluation system for investment be established. There should be a mechanism to protect the profit of small and middle investors. The structure of administration of the listed companies should be optimized. Only through these means the aims of the refinancing could be achieved. And they are the source for the development of the listed companies. Also, they guarantee the persistent and healthy development of capital market.