| With the development of capital markets, listed companies need refinancing in more diverse way. From allotment to seasoned offering, private placement will be adopted as more as possible. Especially in 2006, the success of share-trading reform promoted the rejuvenation of securities market, so as to create favorable condition for private placement. Among so many options of equity refinancing, why the listed companies select the private placement and how to choose the offering targets are worth exploring in financial area. Based on the latest achievements of the private offering and the empirical research and the status of private placement in A-stock, the paper focuses on factors which affect the orientation between the private placement and public offering and the choice between the existing shareholders and new investors.Firstly, the paper estimate a Logistic regression model which focuses on controlling, asymmetry information as well as risk to orientate between private and public offering. And then, the paper adopts the Multinomial Logistic model to analyze the factors that direct the offering targets. During analysis, the paper adds the institutional dummy variable in order to test the impact of Chinese-specific regulation.The result indicates that controlling, asymmetric information and risk not only affect the selection between private and public offering, but also relate to the choice of offering targets. The more centralized control over the enterprise, the more inclining to select public offering, which will not dilute the ownership. Then, during the choice of offering targets, risk factors play a major role. The greater risk has the tendency to choose the private placement to new investors, especially the risk investors who can transfer part of the risk. Finally, institutional factor plays an important role between the choice of private placement and public offering. However, we should look for the more specific index to explanation. |
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