The Study On The Relationship Between Equity Refinancing And Business Performance Of Listed Companies

Refinancing is a mean of obtaining follow-up funds after the IPO of listed companies.In recent years, the heat of refinancing in China's capital markets can be comparable to the IPO.And the performance of listed companies after refinancing has been more concerned by people of the business.Through the refinancing the listed companies acquire a lot of money and invest in new projects,which should greatly enhance their performance,but in fact just the opposite.In this context,this paper chooses the listed companies of refinancing as the sample for the study,researching the relationship between re-financing and business performance.In this paper,the classical finance theory in the West and domestic academics on the issue of equity to refinance the basis of related research,from a theoretical analysis of listed companies is still equity refinancing preference,status,characteristics and equity refinancing of the evolution of regulatory policy and the situation of re-financing with the United States done a comparison,and then through the establishment of model I to the 2004 placement of shares by listed companies for the study,analysis of listed companies to refinance the previous year,when refinancing,the refinancing of three years after the five year changes in performance.,Respectively,of its main business income,net profit and net assets yield a statistical description of analysis before and after refinancing equity profit changes.And the use of empirical methods of distribution,respectively by the year and three years after the allocation by the operating results of regression analysis,the study found that refinancing options will still result in lower business performance.The reason there are serious in our country share the phenomenon of listed companies to non-tradable share the objective of maximizing the interests of shareholders,non-tradable shareholders can be achieved through the denial of a huge income,but do not need to rely on to enhance the performance of companies to obtain equity earnings,while listed companies to raise funds for the management in place,free to change the capital investment,lack of market supervision,which led to shares acquired after the refinancing has not been a lot of money to good use,equity after refinancing the lower operating results.In 2006,China's share of listed companies to carry out a vigorous reform,although the share reform of the results have not been clear,from the perspective of the equity of China's listed companies to refinance substantially contribute to understanding the problems.Combination of share options after the implementation of the refinancing of listed companies in the most recent data,I use by placing in 2007 listed companies to carry out regression analysis of the data and found that the market share of the equity after the refinancing of long-term response to the response is better than before.Finally,this paper proposed to address the issue of share options to address the refinancing of listed companies to raise funds and low efficiency in the use of an effective way,followed by supervision of listed companies should be strengthened to protect the legitimate interests of small and medium-sized shareholders In addition,the role of the Government the correct positioning and equity-based incentives are also an essential mechanism to standardize and improve the refinancing of listed companies and promote China's re-financing market.