The Empirical Research On Refinancing Effect And Affecting Factors Of Listed Company Equity

IPO is the first large-scale financing behavior of listed companies on the stockmarket, and equity refinancing of listed companies is the second ring of money. With therapid development of China’s economy and the market system improved gradually, thelisted companys grew more and more quickly, even more some large enterprises havegradually started to implement internationalization strategy. So the listed company need alot of money to support the rapid development of the enterprise, equity refinancing willbecome the first choice of the financing channels. However, listed companies rarely useequity refinancing to raise money in the securities market in the developed countries.Because all the signs show that the performance will be dropped after the equityrefinancing of listed companies, but China’s listed companies is keen on equityrefinancing. Therefore, there is a certain theoretical and practical significance to researchon equity refinancing effect and its affecting factors of listed companies.This thesis selects the additional financial shares and the rights offering in a-sharelisted companies from2006to2008three years in Shanghai and Shenzhen as theresearch object, and select the profit margin of main operations, advocate businessincome growth rate, total return on assets, return on equity four financial indicators tomeasure the change of listed companies’ operating performance. Respectively analysisthe change trends and characteristics of the performance of two refinancing ways inlisted companies in five years through the statistical description method. Research on theobvious of the change of the years through the T test method, we found that theperformance of listed companies appeared significant decline after the implementation ofaddition, but did not appear significant decline after the rights offering, and the performance after the rights offering is better than the additional financial shares. Then,this thesis analyzed the affecting factors of the changes of operating performance to thelisted companies with the multivariate stepwise regression method. After the empiricalstudy we found that how much free cash flow the companies have and the price valueratio in one year before are both significantly related to the company’s operatingperformance decline after additional financing shares. And the asset-liability ratio andownership concentration of listed companies also have some effect on the operatingperformance change, but the effect is not significant in the empirical test.Finally, this thesis makes a thorough analysis on the reasons of the low ofrefinancing effect in China’s listed companies, and put forwards a series of targetedpolicy recommendations. Such as we should resolutely put an end to the prevalence ofearnings management behavior in listed companies, and gradually perfect theorganizational structure of the listed companies and establish a good salary incentivesystem, gradually perfect in the securities market for additional financing shares of listedcompanies or the rights offering admittance system, as well as strengthen to thesupervision of the service efficiency of funds in listed companies.