An Empirical Research About Influencing Factors Of Irrational Seasoned Equity Offering Of Listed Companies After Equity Division Reform

Before the reform of non-tradable shares, many scholars believe that keen on large-scale equity financing of listed companies in China is because of the equity division of our country. In order to regulate the behavior of the equity financing of listed companies, the reform of non-tradable shares officially launched in2005, and basically completed by the end of2006, the problem of tradable shares and non-tradable shares no longer exists, but the big shareholder control is only transfer from the control of non-tradable shares to tradable shares, equity structure is still unreasonable. At the same time, through the share of reform, many listed companies launched the executives’ shareholding equity incentive plan; All of these will have a significant impact on financing behavior of listed companies. After equity division reform, there is still a serious equity financing preference in our country, mainly displays in the equity refinancing scale by leaps and bounds, and refinance often exceeds the amount of the net assets of the company a few times more and the proportion limit rights issue of10:3, lead to large-scale financing company has growth rapidly, the company operating performance, however, failed to synchronize, appear even downward trend. The performance is that the capital structure is unreasonable, the low utilization rate of capital, and it’s an irrational equity refinancing behavior.At first this article will describe the listed companies SEO situation base on the domestic and foreign theory related to equity financing and refinancing and literature to comb, and starting from our country’s basic national conditions after the reform of non-tradable shares; On this basis, the article chose after the reform of non-tradable shares and convertible bond issues by Shanghai and Shenzhen A which have SEO behavior of listed companies in2009and2010as samples, first of all, give the empirical test of the performance of listed companies after the irrational SEO, such as market decline, equity refinancing preference and raise funds efficiency is not high; Second, establishing multiple regression model to analyze the factors of influencing the irrational equity refinancing behavior of listed companies; Finally, according to the empirical results and the previous study, put forward relevant policy suggestions, in order to present the irrational SEO behavior of listed companies.The introduction part, mainly introduces the research background and research significance of this article, and on the basis of comprehensive research status both in our country and abroad, a research framework of this article, the research methods, and innovation and inadequate is introduced in this paper. The theoretical foundation, on the basis of previous studies on non-tradable shares and the irrational SEO related concept carries on the explanation, and explains the main theoretical of this paper studies. The status analysis, the present situation of the listed companies irrational SEO will be introduced detail by combination charts in this part. The empirical analysis, select samples and setting variables, analyzes the sample company data by Excel and SPSS statistical software. Paired sample test first, after large-scale SEO of listed companies, market declines, raise funds idle, etc., belong to the irrational SEO behavior. Secondly, build multivariate linear regression model, determine the influencing factors of irrational SEO of listed companies, and summarize the empirical results. The research conclusion, the combination of the theoretical basis and empirical analysis, summarizes the research conclusion of this article and put forward related policy suggestions according to the results.In this paper, the research results show that after the equity division reform, listed companies still inclined to equity financing, SEO scale is bigger and bigger especially the unpublicized secondary offering scale, and the scale is beyond the normal production and operation needs. Through the sample company matching test we can see the results that after massive SEO of listed companies, corporate market performance decreased significantly and raise funds idle, belongs to the refinancing behavior of non-rational. Through further affecting the irrational equity refinancing of listed companies influence factor analysis, irrational equity refinancing of listed companies and the ownership concentration was significantly positive correlation, we can’t exclude that the big shareholders using listed companies’ money; ROE have negatively correlated with irrational equity refinancing, showed the shareholders to enterprise’s profit ability, the more bad, the more prone to irrational equity refinancing; Asset-liability ratio and irrational equity refinancing of listed companies are related, the asset-liability ratio is higher, the listed companies’ debt financing ability is poorer, more inclined to large-scale equity refinancing, but at the level of asset-liability ratio less than50%of the cases, a large number of equity refinancing is still not reasonable; P/E ratio positively correlated with irrational equity refinancing, overestimate of market to the company’s shares has an important influence in large equity refinancing of listed companies; The type of listed companies SEO because of policy reasons, also have an important impact on financing scale; But the cost of financing and executives shareholding that there was no significant correlation, on one hand the cost of financing of listed companies is not the most important factors in the SEO, on the other hand executives shareholding ratio of our country is too low,it also needs to improve. Above this it shows that the irrational SEO behavior of listed companies in China, its financing way and size options appear irrational have important relationship with the equity structure of listed companies, earnings trend and debt paying ability and the market reaction and SEO type.