Research Of Refinance And Its Influence On Operating Performance Of Listed Companies

Refinancing through the stock market has become an increasingly important resource of funding for exogenous financing of listed companies in China. Its influence on operating performance of listed companies also has recently caused more and more attention from the public. However, the exact influence on performance turned out to vary from results of research.This article summarizes refinance theory of listed companies from aspects of traditional capital structure theory and modern capital structure theory on basis of review and summary of documents at home and abroad. Second, after a detailed review of refinancing policies and refinancing methods involvement, it sums up the present situation of share placements, increasing issues and issuing convertible bonds in the stock market. Last, the chronologic change of operating performance targets.It is shown that after refinancing through share placements, increasing issues and issuing convertible bonds, commonly the operating performance of listed companies declined. In which the share placements and increasing issues listed companies declined in the first refinancing year but after that the performance passed the test of significance. The main targets of issuing convertible bonds listed companies increased in the first year, some even magnificently, but declined in the next year slowly. Through the comparison of three kinds of refinancing methods, it is found that the profitable and growing capacity of issuing convertible bonds is better than the others.By combining the findings and the status of China's stock market, this article proposed pointedly some policy suggestions, including improving refinancing policies, controlling the process of using refinance funds, assessing and evaluating refinance funds using, modifying the inner administration structure, strengthening the external supervision, developing the bond market, and so on, in order to fully realize the resource allocation function of the stock market.