The Empirical Study On The Correlations Between The Status Of Purchasers, Type Of Assets In Project And The Long-term Stock Price In Private Placement

The paper mainly focus on the correlations between the status of purchasers,type of assets in project and the long-term stock price in private placement. Since CSRC implemented the new regulations for "issuance of the share of public company" in May2006,a new way for re-financing has been created on Chinese Market.With the advantages itself,the private placement has gradually grown to the most important way for the listed company to re-finance.With the development of the practice,many scholars began to take research on the fields of private placement,especialiy focus on the domain of the short-term stock price effect on the stock market,but fewer scholars have researched the long-term stock price effect of private placement on the stock market on account of some objective factors.So what factors have effect the long-term stock price in private placement?So we collect the listed companies which had taken the private placement between June2007and June2008as samples,taking both theoretical and empirical methods to reach the conclusions:(1)the private placement has a positive impact on the long-term stock price of the listed companies.(2)the long-term stock price of the listed companies which the big shareholders and its related enterprises have purchased tends to be better than those institutional investors have purchased.(3) the long-term stock price of the listed companies which raise funds for purchasing equity or operational assets tends to be better than those raise funds to construct the new projects or projects under construction.