The Influence That The Local Government Exerts On Secondary Equity Offering Of The Listed Company

Because of the special mechanism background in Chinese security market, there are countless connections between the government and listed company. Especially, for the local government, the listed companies are regarded as the pillar of local economy, have very important significance to the local government, no matter in terms of economy and politics. So local government unavoidably set out carrying various influence on listed company to strengthen theirs competition among the whole capital market, it is a very common phenomenon that the local government use fiscal support to"glosses over"the profit of the listed company and help them get more chance of refinance in Chinese capital market. Financing on the capital market is a very important purpose for the Enterprises that go on market, the listed companies carry on the earnings management of the financial subsidy by the local government can achieve the goal of refinancing on the capital market. From the political achievements or from the local government developing a listed company for the local economy, or they regard listed company as a channel of capital for the local development, there is a strong motive.According to the distinct regional characteristic of economic growth in our country, the study attempts pursue the macroeconomic environmental and institutional drivers of the local government's financial subsidy behavior, and attempts to describe the local government in different areas of our country have difference in financial subsidy behavior for the Secondary Equity Offering of the listed company.The text examines financial subsidy to ROE of the listed company that implement Secondary Equity Offering by a regression model, and attempts to excavate the regional difference. The Study discovers our country local government fiscal subsidies behavior to a listed company stock right refinancing has very strong teleology, and the effect is very notable. Our country economic growth regional characteristic led to the difference demands and motives among the local government, then led to different behavior involving the refinance of listed company.The paper explores the question and insights to local government fiscal behavior in capital market that has "Chinese characteristics" and is different from other capital markets, had realistic significance, and it offered a different perspectives for settlement of problems in our capital market. Article has been extended to the research of behavior about the local government in our capital market theoretically. From the macro economy development in our country, the paper explored the local government financial subsidy under the environment of our country's economic development.