The Study On The Correlations Between The Status Of Purchasers In Private Placement And The Types Of Information Disclosed

In China it is quite common to see that the stockholders or China Securities Regulatory Commission turns down proposes of Private Placement(PP),one of the ideal financing ways. The main reason for this is that the issue price is unfair.Since listed companies can make use of information disclosure to manipulate the issue price,this paper try to analyze the correlation between the statuses of investors who purchase new stocks issued through PP,the types of information disclosed and stock price movement of the pricing reference period.Using those launched PP during Jan.2006 to Jan.2009 as research sample,this paper establishes Logistic and multivariate liner models,and finds out significant correlation exists between the three items.When the purchasers are major stockholders or their related affiliated parties,listed companies who launch PP are more willing to disclose information,which can make the stock prices during the reference period fall down,to get a lower issue price.As a result,the cumulated abnormal return(CAR) during the reference period is lower than that after the reference period.When the purchasers are unrelated parties,companies who launch PP are more willing to disclose information,which can sore up the stock prices during the reference period,so that they can get a higher issue price.Therefore,CAR during the reference period is higher than that after the reference period.When the PP purchasers consist of major stockholders or their affiliated parties and the unrelated parties,the larger the percentage of stocks purchased by unrelated parties,the higher probability for the listed companies to disclose information,which can sore up the stock prices during the pricing reference period.