Research On The Announcement Eftects And Influencing Factors Of Non-public Offering In China

In recent years,non-public offeirng(NPO) became the desirable choice of listed companyand very popular in China stock market. Meanwhile, There have been many scholars who didthe research on non-public offeirng. Research on non-public offeirng has been one of thehotspots.Because it is not a long time from the implementation of the NPO in China, a lot ofstudies and theoires on NPO haven’t been maturely developed.These studies basicallyconcentrate on the qualitative analysis and the significance of the pirvate placementannouncement effect. But, they don’t answer this questiomwhich facters may influence thevalue and stock pirce of the listed company implementing the non-public offering. Because ofthis, this paper sets listed companies’non-public offeirng event which happened betweenJanuary1，2010and December31,2010as examples, and study the stock pirce effects of thelisted companies based on event study method and linear regression method-Combining withthe domestic and foreign theory about non-public offeirng announcement effect,this papermakes assumptions, select the appropirate variables representing these factors, and build linearmodel. Then, test the influencing factors.The result shows that: there is a positive announcement effect in China’s listed companies’non-public offeirng. The liquidity needs, shareholders equity and the objects of pirvateplacement are the main factors to explain the cumulative abnormal return.Based on the resultsof empirical analysis, this paper can help realize the behavior of the non-public offering inchina securities market and provide suggestions to China’s secuirties regulation agencies.