An Empirical Study On The Business Performance Change Of China’s Listed Companies Pre And Post Directional Add-issuance

Behavioral study on the listed companies’refinancing is always the focus among the theoretical circles. Since2005, with the advancing of shareholder structure reform, the refinancing mode of China’s listed companies has changed greatly, from the preference open add-issuance and share allotment to directional add-issuance. Since then, more and more researchers in theoretical and practical circles pay attention to this new favorite-directional add-issuance. However, due to the short history of directional add-issuance in China’s listed companies, current researches on this aspect are far from mature. How to guide directional add-issuance to healthy and steady development is still a problem to be solved urgently. This article combines the method of normative and empirical study and explores into the operating performance change of China’s listed companies pre and post directional add-issuance. According to the problems in the research conclusion, it makes some corresponding policies and proposals.The main research idea of this article goes like this:take listed companies involving in directional add-issuance in2008as research samples, calculate their scores and orders of operating performance in2007,2009and2010by factor analysis.Based on the score list, this article researches into the business performance change of these companies pre and post directional add-issuance by descriptive statistical analysis and nonparametric test. Furthermore, we analyzes the differences in the change of business performance in different characters of directional add-issuance, i.e. directional add-issuance target, scale, discount, etc.According to empirical study, this article draws the following conclusion:(1)This article discovers that the short-term business performance after directional add-issuance won’t change obviously while the medium or long term performance is declining, which proves that large stockholders may have the behavior of benefit expropriation.(2)On account of the supervising effect, the declining scope of business performance is small when the directional add-issuance objects include the institutional investors.(3) When the scale of directional add-issuance becomes large, the declining scope of business performance will be smaller;(4) The discount of directional add-issuance has no obvious influence on operating performance.