The Factors Analysis That Influence The Methods Of Secondary Equity Offering

The main methods of secondary equity offering (SEO) in China capital market are rightsoffering and Secondary public offering (SPO).Different SEO methods will lead to differentbenefit to diverse participants. At first, this dissertation fuscous on the benefit of negotiableshareholders and nonnegotiable shareholders to analysis the factors which influence the methodsof SEO. And then the dissertation uses Logit regression to investigates the definite factors whichinfluence the choice of SEO methods of listed companies, which are successfully implementedSEO in A stock market during 1999—2004 in China.The results show that: Firstly, the factors which base on the benefit of nonnegotiableshareholders are more important than the factors base on the benefit of negotiable shareholders.Secondly, if the listed companies which have low anticipative profit,high expected net value ofSEO and prospective price different of shares are inclined to use secondary public offering tocollect equity capital. Thirdly, the factors belong to the group of high nonnegotiable share rateare more important than the factors of the other group.