Empirical Research On The Performance Of Equity Rifinancing Of Chinese Listed Firms

Financing is an important guarantee of healthy and sustaining development of a company. As an important channel of financing, rights issue is of essential meanings to the shortlist companies. Since its appearance in 1993, Rights issue has developed rapidly, however, since 2001 equity refinancing has gradually lost its leading status, so why is that? How is the efficiency of utilization of the fund? All of these are the starting point in this paper.This paper has constructed evaluation system which based on factor analysis; then, applying this system, carry out an practical analysis to the performance and efficiency of equity refinancing. The paper has demonstrated that the company's performance has considerably risen after the equity refinancing, by accompanying obvious decline, without the sixth year ascend of performance happened in foreign countries; meanwhile, the paper has argued a different conclusion from all other scholar that rights issue has an evident negative relation to the company scale, illustrating that in china the companies are leading the rough expansion way, and the ' grab money' motivation is obvious; through the practical demonstration that the utilization of financing fund is low, and different policies have an large impact on rights issue and utilization efficiency of money.