Analysis Of Post-SEO Performance And The Influencing Factors On Chinese Listed Companies

Equity refinancing (Seasoned-Equity-Offering) in recent years has been a popular field of domestic and international theoretical and practical research in China. Since the late1990s, with the emergence of the issuance of new shares, the equity refinancing of listed companies is not only a single allotment, a number of listed companies in the promotion of capital globalization are also in growing demand in order to develop new projects, diversification of funding. More financing options for listed companies provided more convenient financing environment and more opportunities to grow. Compared to debt financing, equity financing is more flexible and the amount of financing is higher, thus becoming the first choice of many listed companies. The financial condition of these companies has also become a major concern of stakeholders. After financing, if it will bring listed companies more profitable opportunities and profit prospects, which factors their changes in performance due to are all will be explored in depth in this article. There has been a lot of researches about performance after equity refinancing, but most of the conclusions on the market reaction are the stock price changes, the long-term financial results for the financing has yet get consistent results, and relevant affecting factors of performance changing are still rarely been researched. This article is based on this study blank and tries to summarize the performance of listed companies after equity refinancing and related factors.In this article,121A-share listed companies in Shanghai and Shenzhen who implemented the allotment and issuance at2001to2004are taken as the study sample, with nine years as the observation period, six years after the refinancing and two years before financing. Varieties of different financial indicators are used in statistic description and non-parametric tests, and draw the relevant conclusions of the results of the trend. Asymmetric information theory, shareholding structure theory, agency theory, and earnings management hypothesis theory are as the basis to make assumptions. Using multiple linear regression models of the sample datafrom the short-term and long-term regression analysis, possible influencing factors are summarized.The findings show that:the short-term financial performance of listed companies after refinancing is poor, and the performance is worse than before. Compared with those non-refinancing companies, the results also have no advantage; however, after about three years to adjust, it does not appear sustained landslide from the long-term. As to influencing factors, the uncoordinated proportion of the amount of financing and net assets is an important factor of corporate financing short-term underperformance, which also reflects China’s listed companies "misappropriating" motivation; equity concentration and the size of the company have significant impact about the long-term performance. The more concentrated of the equity, the worse long-term performance after the financing, larger companies can make fuller use of the funds, external oversight and high requirements on corporate disclosure result to the better performance of bigger companies than smellers. Finally, policies and recommendations and internal issues for improvements are proposed from external and internal, respectively.