Study On Pricing And Economic Consequences In A-Share Market Of Chinese Listed Companies Of Private Placement

In recent years, Private Placement as one of the seasoned equity offerings has gradually become the main choice in china. Use the implement Private Placement in A-Share Market of China Listed Companies as sample data to analysis the problems of discount and economic consequences, in2006to2010.With the descriptive statistical analysis, correlation analysis, means test and multiple linear regression analysis, to proof conclusions of theory analysis.As the aspect of issue price, under the conditions of asymmetric information, the Listed Companies have preference on discount of Private Placement. Meanwhile, the study also shows that when Private Placement to the large shareholder or their related party, the discount will less than the other. Consequences, the paper holds that the shareholder will carve up the added part of value accordance with share proportion, when Listed Companies implement Private Placement. So if the large shareholder and institutional investors want more profit, encroach on minority shareholders’interests is the way. As the aspect of market reaction in economic consequences take the cumulative abnormal return to be the yardstick of market reaction, find that, first there is a positive announcement effect, second controlling shareholder’s share proportion and market reaction in short time after Private Placement have a significant negative correlation, third the purchasers market reaction have no significant differences among three groups. As the aspect of firm reaction in economic consequences, the paper get that different industries will product different firms reaction after Private Placement.The article research on pricing mechanism of Private Placement, based on discussion it is fair or not, find out influence factors of Private Placement’s price setting. Besides, study on economic consequences to analysis the influence of interest balance with shareholder, as well as market reaction and firm reaction in Private Placement. These conclusion could protect minority shareholders’interests, while be conducive to Improve the operating performance of Listed Companies and development of whole Chinese capital market.