Placement Behavior Of Listed Companies And Company Performance Empirical Study

With the development of our country's security market, rights issues has been one of the most important financing channels of China's listed companies. This paper selects a sample of China's listed corporations implementing rights issues during 1997-2000. By analyzing their behaviors and achievements under the particular institutional background, I summarize the probable incentives of rights issues. Combing with the empirical test, I analyze the trend of the listed companies' long-run performance with different behaviors in implementing rights issues.Firstly, the paper observes the offering behavior of large shareholders and its' economic consequence. Large shareholders generally have a large amount of shares, and actually control the company and dominate the future development. According to the empirical test, I find the more active the large shareholders behavior, the more positive the performance shows. My research indicates that the offering behavior of large shareholders provides the impressive information of listed companies' development opportunities.Secondly, the paper studies the use of rights issues funds and the corporation performance. It's necessary for companies to realize their expected income and the development target that the rights issues funds will be used properly. From the funds' investment directions, the schedule and whether the funds are used in related transactions or not, the paper analyzes the different long-run performance with different funds usage behaviors.Lastly, this paper analyzes the amount of rights issues and conducts comparison between the single issuing rights firms and multiple issuing rights firms. Combing with the empirical analysis and regression result, the paper furthers analyzing the performance trend and the differences.Through these analyses mentioned above, this paper expects to provide some suggestions for investors on the investment directions, and impel the listed companies to use the rights issues funds more carefully, and also offers some advice for government's supervision section to improve their regulatory methods.