The Acceptance Of Chinese Investors Of The Refinancing Of Listed Companies After The Reform Of Split Share Structure In China

With the development of China’s securities market, the scale of financing is gradually increasing. Our community is very concerned about the problem of refinancing. Refinancing plays an essential role in the development of our companies. The refinancing is more important means of financing in the listed company.The refinancing can be divided into the endogenous financing and exogenous financing. Endogenous financing includes internal retained earnings and provision for depreciation of fixed assets; exogenous financing is divided into equity financing and debt financing. Equity financing includes placement, private placement, public offering; debt financing includes long-and short-term borrowings, issuance of corporate bonds, enterprise bonds. In addition a special way of refinancing is convertible bonds which combine the characteristics of equity financing and the characteristics of debt financing.Listed companies in China have been preferred equity financing for a long time. The financing structure of listed companies in China is very different with the financing structure of foreign countries. Corporate bonds are officially launched in August2007. With the completion of China’s split share structure reform and Affected by the international economic situation, equity financing behavior of listed companies in China are gradually changed. The ratio of the equity financing to debt financing gradually decreased from6.53in2008to3.04in2011. This indicates that the financing channels of the listed companies in China are gradually enriched.Abroad hypothesis of the company’s refinancing include optimal capital structure hypothesis, financing Pecking Order theory, adverse selection hypothesis, and wealth redistribution hypothesis. Conclusions of hypothesis on the refinancing of the company are basically the same. The company equity financing delivered a negative signal to the market, so the company’s stock price fell by a big margin. Corporate bonds which improves the enterprise’s ratio of assets and liabilities, and take full advantage of the debt tax shield. Therefore, the announcement effect for corporate bonds will be better than the announcement effect of equity financing. Build a mature and efficient market system requires not only listed companies continue to optimize its financing structure, but also investors scientific and rational to participate in market investment. In this context, changes of the refinancing of listed companies behavior can be recognized by the market? Whether the stock market investors’response of the investment behavior of listed companies is rational? These are all in this article the direction of research.This article is divided into seven parts, mainly including Introduction, literature review, Definition and theoretical basis, Background analysis. Study design and sample selection, a listed company Notice Empirical analysis, conclusions and recommendations.Details are as follows:The first chapter is the Introduction to this article. In the introduction section introduces the research background of this article, the basic idea of research methods and research. The scope of this study is from August2007to late2011. Corporate bonds were officially launched in August2007. Select the study interval in order to facilitate comparison of three means of financing the announcement effect.The second chapter is literature review. This chapter describes the content and method of calculation of the announcement effect. Three ways of calculation of excess rates of return are the mean of the adjustment model, the market index to adjust the model law and the market model. Summarize study on the refinancing announcement effect at home and abroad. The announcement effect of stock market in the United States is negative. Announcement effect of the corporate bonds is greater than the private placement, and the convertible bonds live between the two, in line with the financing Pecking Order theory. Outside the U.S. stock market, the announcement effect of convertible bonds in Japan and the Netherlands is positive. In intellectual stock market, the announcement effect of corporate bonds is not significant. Malaysia’s debt announcement effect is positive. In China’s securities market, a large number of research findings confirmed that the private placement announcement effect is significantly positive. The third chapter is definitions and theoretical basis. This chapter introduces three refinancing connotations, and compares the advantages and disadvantages of the three way of refinancing. Equity financing will deliver to market a negative signal, so the company’s stock price fell by a big margin. Issuance of corporate bonds improves the enterprise’s ratios of assets and liabilities, and takes full advantage of the debt tax shield. Therefore, the announcement effect for corporate bonds will be better than the announcement effect of equity financing.The fourth chapter is background analysis. This chapter describes the status of China’s re-financing and the development process. It also presents the reasons causing equity financing preference of listed companies in China.The fifth chapter is the study design and sample selection. This chapter describes the event study method, the event date and event of the selection method, the excess rate of return calculation method.The sixth chapter is the refinancing of listed companies the announcement effect of empirical analysis. This chapter begins by descriptive statistics of firm characteristics on different refinancing samples. Select indicators of the refinancing of the issue size, the largest shareholder stake, the second shareholders to tenth shareholding ratio of the size of the company, net assets per share, the ratio of fixed assets, asset liability ratio, and quick ratio and so on. And then in different time window use single sample T-test sample on the abnormal return and cumulative abnormal return.The seventh chapter is the conclusions and recommendations. The paper concludes that:(1) After the Split share structure reform, acceptance of our market investors for equity financing is better than debt financing.(2) Refinancing of listed companies have more serious "choose" behavior, thus affecting the refinancing of listed companies the announcement effect.(3) Announcement effects of corporate bonds is not significant, and market acceptance is not obvious(4) The main companies which issue corporate bonds in China are concentrated in large quality enterprises. SME in China are still unable to issue corporate bonds, mainly relying on bank loans for financing.