Empirical Research On Equity Refinancing And The Operational Performance Of China's Public Companies

Modern finance theories state that the operational objective of a firm is to realize the maximum value of the firm.To maintain a reasonable capital structure,firms usually refinance in an inside equity refinancing - debt refinancing - outside equity refinancing order.In our country,split share structure,company governance disorder,backwardness of supervising measures and so on make that the listed companies' pose a low efficiency in using funds that collected through equity refinancing(ER),and they prefer to ER universally.Theoretically speaking,this will enhance the operational performances of the public companies.This dissertation puts a positive analysis over the sample listed companies that conducted ER in 2002,2003 and 2004 with the method of trend analysis. The result makes it known that the overall performance does come down,the "low cost" of ER did not enhance the performances of the sample companies,furthermore,it deteriorated them.At present,domestic scholars' conclusions on equity refinancing vary from different perspectives.And only a minority of the scholars considers the factor of the split share structure.The researches do not give positive analysis over the relationship between the refinancing efficiencies and the split share structure.Together with the 2006 and 2007 latest data of the listed companies that conducted ER after share mergers reform,this paper finds that the market's short-term reaction behaves better than before...