Private Placement, Subscription And The Interests Of Large Shareholders Transport

The private placement is one of the important ways of equity refinancing, because the private placement involves a new distribution of interests between shareholders and original shareholders,major shareholders have an incentive to transfer benefits by paying lower consideration or injection of non-performing assets, At the same time, China’s current shareholding structure is relatively concentrated, the other shareholders can’t checks and balances major shareholder behavior effectively, so major shareholders have the opportunity to transfer interests because of imperfect relevant laws and regulations.At present, the research on the private placement more focused on the discount effect and the performance of stock price at short-term and long-term, but the author found that major shareholders can participate in the private placement by two kinds of subscribe way:asset subscribe and cash subscribe. By different subscribe way, big shareholders use different means to transfer interests, and the financial consequences have certain differences, so this paper research on the problem above.This paper adopts multiple case study method, chooses four companies’ private placements as cases, sorts and analyzes dates from the aspects of private placement process, transfer interests, and the impact on the financial indicators on the basis of summarizing the predecessors’ research results, finally the paper come to conclusions that:1.Private placement conducted by the major shareholder has the phenomena of transfer interests, no matter by asset or by cash, the means to transfer interests include developing a low placement price, injecting into poor quality assets, overrating the value of assets, making full use of cash in behavior and so on.2.As a result of transferring of benefits, the private placement has a negative impact on listed companies’ financial and operational performance.3.When major shareholders purchase the stocks of the private placement by asset, the negative impact on listed companies 1 financial and operational performance can be more serious.