China's Listed Companies Issuing New Shares To Finance Research,

Seasoned public offerings (SPO) make a general reference that the listed company issues new stocks once again after the initial public offering. It is one financing way to widen investment, expand production, improve the technology or shift the founder-stockholders' shares into cash. The history of SPO in china isn't long, but the market response to it has experienced the transform from approval to disgust.Many problems have appeared in the SPO market. First, the SPO has evolved into the nonnegotiable stockholders swallowing the negotiablestockholders' equities. Second, the pricing policy of SPO is not reasonable-itbases on the secondary market stocks price and discounts only a little, such as 15%~20%.Third, the funds raised from SPO are used out of restrain. They are let lying idle or altered the scheduled use. Furthermore, the listed company's stock market price and EPS often decline after SPO. As to the Security Supervise Commission, it only relies on enhancing the threshold and lacks the effective controlling measures. In order to give full play to financing function of security market and protect the investors' profit, it is necessary to research how to improve the SPO policy to suit our security market. This dissertation will discuss the problems existing in the unreasonable SPO pattern, analyze those factors that affect the management level's decision-making of SPO and research the profit-driving source of the nonnegotiable stockholders' preferable motion of SPO. Based on above, the article will promote some measures to reform SPO and embody the investors' profit into the refinance actions taken by the listed company.This article first reviews the course of seasoned new equity offerings in Chinese listed companies. It discusses the problems, barriers correlated with SPO and their contributing factors, such as the reason why the declaration of SPO often causes the decline of stock market price. Next, by the comparison and drawing on international SPO experience-reference, it brings up a series of enlightened theory to Chinese SPO practices. Afterwards, the dissertation takes those listed companies which have seasoned public offerings during 1998 to 2002 as the samples, analyses the factors which affect the management level decision-making of SPO. Furthermore, combined with the influential model, the article measures the effects of SPO on the equity-distribution, sustainedgrowing-up and policy-making in the listed companies. At last, we promote some suggestions and tactics to reform and regulate the Chinese Seasoned Public Offerings.Wu Mengyuan(Accounting) Directed by: Tian Jianfang(Associate Professor)...