A Research On The Factors Influence Listed Companies’ Private Placement

Chinese stock market has made outstanding achievements for thirty years. Alongwith the development of capital market listed companies are also constantly developnew financing way. so as to create favorable conditions for Private Placement.Meanwhile，because of Private Placement itself has low threshold，flexible and someother advantages that other financing ways do not have， these make PrivatePlacement especially suitable for listed companies’ refinancing in the full circulationenvironment.Nowadays，Private Placement has become the most important meansand main stream of refinancing ways. Foreign scholars began to work on the listedcompanies’ private placement early，and had analyzed the real motives and Problemsexists. However domestic scholars studied it late，and there is few research on themotives and causes for listed companies’ Private Placement. Why there are so manycompanies prefer using Private Placement for refinancing? And how do these factorsmake listed companies to choose Private Placement for refinancing? These issues areall worth being studied on. Understanding these Problems is important to optimizethe refinancing decision-making and will help listed companies make better use ofPrivate Placement.The first part is the introduction to outline the background of topics, researchsignificance，and the view Points of the foreign scholars’ and domesticates, the basicanalysis of this Paper. It enumerates the system standards about Private Placement inour country. It introduces the advantages and disadvantages and the operating modeof Private Placement. Then, based on the descriptive statistic conducted on Chineselisted companies’ Private placement in recent years, a theoretical analysis of factorswhich would make listed companies to choose Private Placement both from insideand outside of the company is conducted. The fourth part is mainly on empiricalstudy. Though the selection of the latest sample data and variable indicators, a modelis then built up, and the factors are analyzed in Logistic regression by using Eviewssoftware. The empirical result shows that controlling, asymmetric information and risk can all, affect the motives for listed companies’ Private Placement, but there hassome differences in the degree of the impact. In Part five, a conclusion study isreached on, the empirical study.Finally according to the Problems found in the analysis, Policies andsuggestions are made and the future research direction is also discussed. in the aspectsof their own company, the listed company should be introduce strategic investors,improve the system of independent directors and improve the risk managementmechanism; In the regulatory, regulators should improve the information disclosuremechanism, supervision in asset quality, improve the limited sales conditions,stepsof regulations, supervision price control behavior and correct orientation additionalfunction.