The Research On Secondary Equity Offering Of Listed Companies

In the environment of market economy, refinancing ability is very important to the developing ability of the listed companies. Recent years, the listed companies in China often select Secondary Equity Offering which include: Right issuing, Seasoned Equity Offering, Convertible Bonds.The research of the Secondary Equity Offering (SEO) always center on two problems: the first is the listed companies how to select the form of the SEO, and the second is the how the operating performance changing after SEO. As for these two questions, there are so many foreign scholars preceded the analyses from different angles, and they also have achieved a lot of valuable conclusions. but in the stock market in China there is a very special situation means non-tradable shares, this means it may be unsuitable for us to apply the foreign scholars'conclusions directly to expound the refinancing behavior of the listed companies in China. So which factors affect the companies'behavior in select Right issuing, Seasoned Equity Offering or Convertible Bonds in China? If the companies chose Different forms, how will change in the company's operating performance after SEO? So this paper just try to analyze the factors which will affect the company's refinancing behavior and the change of the performance after SEO,in order to help relevant department formulate rational refinancing policy to make the stock market have a sound development.The article has five parts:The first part author proceeds with theoretical foundation of refinancing, analyzes aim and forms of the refinancing, then summarizes the relevant study and classic theories, this is the theoretical foundation of the paper.The second part is the study on refinancing behavior of the listed companies of our country. This part use the general data of the listed companies in China to analyze the companies'refinancing behavior characteristics and use this as a foundation to analyze the factors that affect the refinancing behavior of the listed companies in China.The third part is the study on the listed companies'operating performance around SEO. This part choose the companies which had made right issuing, seasoned equity offering or convertible bonds in 2002 as samples, and use these companies'finance data between 2001 to 2004 to make empirical analyze.The four part explain why more than half of the companies'operating performance have generally dropped after SEO The last part rethink of the SEO'forms. Then draw a general conclusion of the dissertation and give some suggestions about the listed companies'SEO.The key points of this thesis:1. The SEO is become more important, and the refinancing is almost as important as IPO in the scale of financing.2. After analyzes the factors which affect the companies'behavior, author find that although the cost, the offering condition, the benefit of the company's real controller, the circulate equity's ratio, and the financial situation of the company will affect the behavior of the company, the real controller's benefit is the most important fact .3. After analyzes the listed companies'operating performance around SEO, thus draws a conclusion that more than half of the companies'operating performance have generally dropped after SEO, and the improvement often concentrate on the operating revenue or operating profit, but the indexes which representative the company's quality such as EVA, EPS , ROE dropped after SEO. This is directly relation to the companies'motivation, because they only financed for financing. So, they also change the purpose of the financing money. These can also affect the performance of the company.Compared with the other domestic works, this thesis has made some characteristics and contributions:First is to discussed refinancing behavior of the companies in affect factors, affect the performance, and the general characteristics of the refinancing, this paper made a all-around study on SEO in China.Secondly, this paper use the financial data from 2001 to 2004, so the data have timeliness, and author compared Right issuing, Seasoned Equity Offering, Convertible Bonds, so it relating tightly to the real situation in China now.Thirdly, base on the study, author find the real controller's benefit is the most important fact which affect the behavior of the companies, and the motivation of the company is only want to cheating money and this lead to the dropped of the performance of the company. Combine the Seasoned Equity Offering of definite direction, author put forward the particular purpose of collect the funds is also affect the behavior of the companies.Thank you all for your kind comments.