Equity Refinancing Announcement Effect Of Empirical Research

The industry is how to choose equity financing in order to maximize enterprise value, has been the focus of attention by the academia and practitioners. Directed issuance of new shares of listed companies in China is a new phenomenon appeared after the split share structure reform, and received more attention in recent years to become mainstream equity refinancing. In addition, the implementation of the private placement of listed companies, the majority of listed companies in the same period have carried out a dividend, corporate re-financing because of insufficient funds, the dividend is due to earnings, seemingly contradictory, the two sides coexist is worth studying. Therefore, the announcement effect of the article on the Chinese equity refinancing in three ways Empirical Comparison Study of empirical research on the effect of dividends and the private placement of the same corporate announcements.Selected January 1,2007-December 31,2010, China's Shanghai A-share listed companies based on data samples corresponding to the theoretical and empirical research, in accordance with the appropriate conditions to filter out. Abnormal returns. Samples and found that Chinese listed companies in the equity refinancing options, the preferred orientation issuance of new shares financing, followed by the public issuance of new shares, and finally placement. Added to the dividend constraints filtered sample data, according to the first dividend after dividend chronological and compliance with national policies and regulations, divided into three cases, focuses on two of the special circumstances:Class A, non-compliant private placement; class B, the first private placement of dividends. Study found that the Class A private placement announcement effect and the normal orientation of the issuance of new shares announcement effect from another point of view in the future to continue in-depth study; Class B private placement announcement effect and the normal orientation of the issuance of new shares announcement effect is similar, to raise funds use of funds raised object, return on equity and additional size and announcement effects have a significant effect, while the debt ratio does not exist a significant relationship between firm size and announcement effects.