Research On Long-term Operating Performance Of Listed Firms Following Rights Issues

Take a wide view of the development process of Chinese stock market, As an achievable way of refinancing with low cost ,rights issues become one of the main choices that most listed firms refinancing. In numerous publishment and discussion,because of the rights issues fund's particular use is usually change or can't carry out, rights issues is think to be a"turn money" behavior of listed firms.So, how to discover listed firms' blindness rights issue, alteration fund use in time, preventing long-term fall of the listed firms' performance, adopt against measure effectively,support investors' rights, guarantee the healthy growth of the stock market, become an urgent matter of the moment.At present, the research on right issue of listed firms, mainly focus on operating prformance of listed firms following rights issue, but lack as to it's back influence factors And, existing researches of operating prformance of listed firms following rights issue mainly based on surplus managment theory.Who carry on an analytical research based on the free cash flow theory,in fact is not to much.This paper is divided into five parts.Section 1 is to put forward the question and introduced the mainly theories concerned with the performance after right issue,including free cash-flow hypotheses and agency costs theory. In section 2, introduced the history of Chinese right issue policy, then introduce the long-term operating prformance Index signs. Section 3 is the statistics study respectively on performance after right issue of listed firms.In section 4,analyzed the back influence factors of operating performance fall of listed firms,and then put forward corresponding suggestion to avoid operating performance fall. Section 5 is the summary of all paper. And find out that free cash-flow hypotheses and agency costs theory can explain operating performance fall of listed firms after right issue.