| Private placement of new shares is the action that a company through a non-public way to release their share to a certain group of investor.Based on the listed company’s statistics of the current refinancing situation, during2006to2011, there are712firms successfully implemented private placement, the total refinancing scale was1448.545billion Yuan; and there were99listed companies which public issuance of their share, total scale were224.547billion Yuan, only60listed companies implemented the rights offerings to refinance, the scale of financing only217.108billion Yuan. There is no doubt that private placement had became the first refinancing choice on the A stock market.As the biggest and the most frequently implemented way, private placement will certainly have an enormous influence on all the parties, thus, private placement has became the focus to the study of refinancing. As a view to study private placement, researchers from the whole world have paid attention on the private placement effect research. The foreign researchers has did a lot of theoretical research and empirical analysis, but in China, for the A-share market with Chinese characteristics, the research is not so mature, the related studies are not that fully developed, so, base on the data of A-share market, this paper is going to analysis the "private placement effect" in a comprehensive way.This paper will use four parts to analysis the private placement effect. Logical relationship for this article:First part, point out the problem, and explains the topic through literature briefly. The second part plays a connecting role, in this part will continually explain Chinese private replacement, it actually a extend to the introduction part; meanwhile, further described the progress of private placement policy, motivation of the private placement and features of private placement, also did the deeper analysis to the action of Chinese private placement, the most important function was tell us that private replacement should be a advantage factor in stock market, and it is a strong prove for the paper to assume the private placement announcement has a positive effect. The procedure of private placement and define of announcement is the foreshadowing for the empirical part; the theoretical basis of this part explained the private placement from a theoretical view. Thus, this part is a support for the third part’s empirical analysis. The third part is the core part of this paper, it supports the content from above and proved the assume. The fourth part is conclusion part, it gives the research result.Four parts of this paper as follows:Part one:Introduction. This part includes:1.The background of the topic and the meanings of the study. The paper will simply introduce the basic refinancing situation for Chinese listed companies from2006to2011. And the paper will analysis the meanings of private placement from the views of the three participants which they are investors, financiers and regulators;2. Domestic and international literature review, in this part we will review the prior research results of refinancing and private placement effects.3. Research methods and framework. This part expounds my research logic.4. Innovation and the shortage. In the creative part I will mainly discuss my different research views, the methods of the study and my suggestions. And I will talk about my shortage from my data, the risky influence of stock market, standard for comparison and the follow-up research.Part two:Theory analysis. This part will include:1.The summary of Chinese private placement. This part we will discuss the progress of Chinese private placement policy and the motivation of private placement offerings, the features of private placement and the procedure of private placement, also, I will define the main object of the study:private placement announcement date;2. Theoretical basis. The paper summarized the theories on the private placement.Part three:Empirical analysis.1, Design of empirical analysis. This part will briefly introduce event study methodology, and based on the basic procedure of this method, the paper will start the empirical analysis to our research object.2, Sample selection, depends on the research topic, the paper have selected the sample firms which they had successfully implemented private placement, and finally I selected77samples, and then analysis it.3, Empirical analysis and explains the private placement announcement effect. Through the one sample T test, the paper compared the sample’s average abnormal rate of return and the cumulative average abnormal return with the assumed zero mean, in order to test the announcement effect is positive or not, at last the paper put the announcement effect of the three announcement dates into compare, analysis the difference and trend between them.Part four is about conclusions and policy recommendations. First, the paper will describe the results of the research, through the analysis, tested the three research hypothesis about private placement announcement, and drawn the following conclusions:1. The private placement effect of the board of directors plans is significantly positive. This news will have a noticeable influence on average abnormal return rate and cumulative average abnormal return rate, the influence duration are approximately7trading days. In this period cumulative return rate is6.1%.2. Notice of authorization on the announcement date has a significant positive impact on stock price, average abnormal return rate on announcement day is0.56%, but the positive influence only lasts a very short period, in addition, the next day of announcement data has a negative effect.3. When the day that "Private placement announcement of listing" published, there is a clearly positive influence on stock price, the average abnormal return rate is0.64%at announcement day, but only lasts its effect for a very short time, so, it only had a very tiny influence on the whole event.4. Compares the three announcements effect on stock price, we found in the three of them, the private placement effect of the board of directors plans had the most positive influence, and last the longest time, samples’average abnormal return rate and cumulative abnormal return rate are also the highest among the three announcement. Approval day and listing day’s positive stock price effect are much weaker than the board of director’s plan day; there is no much influence difference between approval day and listing day, so, this article considers that in the progress of private placement, these3announcements’announcement effects are not presented a "strong-weak-weakest" progress, but directly from strong to weak, so, at last the paper raised suggestion to improve the administration of private placement, improve the occupation accomplishment of investors, form these two aspect, raised my policy suggestion.The innovate of the paper:1, The new research view. Generally,researchers only analysis one certain announcement, but this paper not only analysis the three important announcement, but also compare them, and analysis the trend of private placement effect,get the comprehensive results2, This paper had a creative analysis technique. It had a comprehensive analysis to the T test, especially on the "SIG", except applied the traditional way to judge the effects, the paper also observed the trend of the SIG, put the significant continuous days,closing to the base date into the research reference.3, Depends on theoretical and empirical analysis results, put my own points of view to the current policyThe shortage of the paper:1, The limited of selected sample data:only chose the sample data from2011, and the A-share market in2011was having a unilateral slide trend, it will influence on the research results.2, This paper investigates the SIG, but the method is the attempted method, and without a recognized、mature standard, this will influence on the research results.3, This paper does not analysis the factors which influencing on private placement, it should be the follow-up research. |
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