Research On The Factors Of The Private Placement Announcement Effect

As a finance innovation of the full circulation times,the private placement is increasingly concerned by domestic scholars.In fact,the private placement has a long history,and it is similar with the private equity placement of foreign countries. The research of the private equity placement from home and abroad focuses on its announcement effect, the announcement effect of factors and so on.We have obtained a rich set of theoretical results,and many monitoring hypothesises are proposed,such as supervisor hypothesis,asymmetric information hypothesis, defense hypothesis, shareholders control hypothesis, price pressure hypothesis, investment opportunities hypothesis and company quality hypothesis.However, the current research is based on "rational economic man" assumption.Many researches ignore the investors psychology's factor. A large number of studies have shown that the existence of stock market investors have a variety of psychological and behavioral bias.Their behavior is also affected by the investor sentiment.Therefore, it is very necessary that we should consider the investor sentiment influences the announcement effect.This paper selects a sample of the domestic listed corporations in A-share market.By the event study,we find the announcement effect of the private equity placement is positive; By the cross-section regression analysis, we find that the change of the ownership concentration, the premium rate and the investor sentiment will have a significant impact on the announcement effect. Further, the investor sentiment theory has better explanatory power.