The Empirical Study On Chinese Listed Banks Refinancing Announcement Effects

Commercial banks is different from general business, capital regulation is the core of prudential supervision. In the case of capital constraints, domestic listed banks to meet regulatory capital adequacy ratio by issuing shares, convertible bonds, preferred shares, or issue subordinated debt, etc. to enhance the capital. Tewnty contries leaders made agreement BaselⅢon November 12,2010. On October 14, 2010, Standard Chartered Bank announced financing of f 3.3 billion shares for the BaselⅢcapital requirements. From January 1,2000 to April 30,2011, China's listed banks have announced 55 refinance,22 equity refinancing and 36 non-equity refinancing triggering a second wave of refinancing.At the same time, Listed bank refinancing as the current research focus, domestic and foreign scholars on the refinancing of listed companies announcement effects from stock price reaction, the theoretical hypothesis and other aspects of a large number of theoretical and empirical research.And foreign scholars the listed banks refinancing announcement effects from refinancing theory and voluntary and involuntary are two aspects of financing a lot of theoretical and empirical research.In our contry, this research is relatively small and in the qualitative phase.In this paper, we do research in refinancing announcement effects of listed banks.Starting from October 1,2004 to September 30,2011 occurred in 54 valid samples, using event study and cross-section regression analysis of the listed banks, and how the effects of refinancing announcement factors. Through theoretical analysis and empirical findings:Equity Refinancing with a negative announcement effects, non-equity refinancing with a positive announcement effect, non-equity refinancing in the announcement effect is relatively better, and different market conditions and the different re-financing under the announcement effects are different. By cross-sectional regression found that different re-financing by the banks asset quality, loan expansion, capital position, raising various factors, that the information asymmetry hypothesis, free cash flow hypothesis, voluntary and involuntary financing hypothesis and the Chinese capital market special factors in the presence of different financing methods. This article that China's listed banks to refinance in the future how to improve the efficiency, can be used to issue hybrid capital bonds, multi-product, as the issue of subordinated debt to loan ratio indicators, to improve their asset quality, etc.