Empirical Analysis For Listed-companies SEOs

According to the Shanghai Stock Exchange A-shares within 1999-2008 SEOs (the sample period changes a little as the required of advancing and lagging),this paper uses logit models to make a study of market timing theory about all the listed companies,which strongly supported by empirical studies.This paper also makes model's sensitivity analysis and found that even if the variables change greatly,the probability of the SEOs is still very small and trivial. This paper finds that even without the approval role of the regulatory agency,the market timing behavior in China Shanghai A-shares market is not obvious.In order to find the real motivation of SEOs,this paper from the perspective of listed companies' SEOs may be due to fundamentals changes(such as internal profit restructuring,diversification reducing outside investment,etc.) which resulted in increased demand for cash colleting.Subsamples all listed-companies into four groups according to total assets and M/B,after analyzing SEOs companies' ratio of cash/total asset,finding that many SEOs companies these ratios are lower than the same type of companies which non-SEOs.Then gradually analysis of SEOs inflows to the impact of changes in capital expenditure,liabilities and other factors,finding out that capital expenditure has not increased significantly and even declined by some companies,the majority of corporate debt financing compared with a substantial increase in the former.To test the hypothesis re-balancing capital structure found that hypothesis can't hold in our sample.Through the above analysis,the paper's main conclusions are:Within most of the sample period of the listed companies,the most important motive for SEOs is to meet the needs of cash which arising from recent changes in the fundamentals.Some early related literatures only studied the implementation of SEOs companies,neglecting the listed-companies which could market timing but didn't. This paper also takes into account the influence of regulatory institutional,which could influence the results of analysis.It is very hard to distinguish them strictly,so early literature's models within this area are not credible.