Analysis Of Refinancing' Impact On Performance Of Listed Companies

Refinancing is one of the ways to obtain follow-on funding for a listed company after the IPO. In recent years, refinancing has played a more important role in the Chinese capital market. However, what has been concerned is the performance of listed company after refinancing. Through refinancing, a listed company has substantial fund to invest in the planned project, and this should improve its performance. But the fact is not the same. Around this background, this paper research three kinds of refinancing: the rights issue, seasoned equity offering and convertible bond, and gives a comparative analysis on the performance of listed companies.Through factor analysis, this paper discusses the performance changes of listed companies among four years: the year before refinancing, the refinancing year, the first year after refinancing and the second year after refinancing. Focus on the three refinancing methods: the rights issue, seasoned equity offering and convertible bond, each can get a conclusion. And then it discusses the impact of changing the orientation of raised fund. Meanwhile, this paper also reviews whether the listed companies put the raised fund into main business, and studies their performance changes. Finally, it also compares the differences between the three ways of refinancing.Combined with the reality of China's listed companies, this paper analyzes the reasons for the performance changes. And then, concerning these reasons, we give some suggestions to standardize the refinancing activities of listed companies, and to promote our refinancing market.