Equity Financing Research On The Impact Of The Value Of Listed Companies

With the development of market-oriented economic system of China, financing issues of Chinese companies had changed their way of relying on the government finance allotment or totally on bank loans, to multi-methods in the security market. To the listed companies, after the IPO, seasoned equity offerings (SEO), righting issues and convertible bonds are three main ways to raise capital today. To find out the characteristics of refinancing issues in China, this paper makes a comparative analysis on those three refinancing methods.Firstly, through making regression equations, this paper gives an empirical analysis on market impact of refinancing issues, which is called announcement effect here. According to the empirical test, on the announcement day, the stock rate of return beyond market always gets a favorable effect if the listed companies selected SEO or convertible bonds refinancing methods, however, companies those selected righting issues may get a negative effect on their stocks' price.The second, these paper analyses the long-run effect of refinancing issues on companies' operation performance through nonparametric tests. According to the results of Wilcoxon test and comparative analysis, all these three methods of refinancing may bring negative effects on the companies long-run performance. Among the three refinancing issues, SEO is better than the other two methods, and then is convertible bonds and the last is righting issues.At last, through the analysis mentioned above, this paper expects to provide some suggestions to the listed companies on refinancing issues selection, and also offer some advice for the government's supervision section to improve their regulatory methods.