Empirical Study On Discount And Announcement Effect Of The Equity Private Placement Of China’s Public Companies

With the successful implementation of the reform of non-tradable shares, the securities market financing function obtained the rapid development, China securities regulatory commission promulgated the " administrative measures for the issuance of securities of listed companies" in2006, private placement went into the listed companiesfield of vision as a new way of refinancing, and opened the prelude of the rapid development, due to the low threshold of the issue, the simple of distribution process, private placement has increasingly become the main refinance way of listed companies which shortage funds,and has become hot spots which the general investors chasing.In the research question of private placement, the first question is stock pricing, based on the research of the related literature at home and abroad we found that most countries have a discount phenomenon, the abroad study of offering discount basically can be divided into monitoring hypothesis, information asymmetry hypothesis, management opportunism, hypothesis restricted period hypothesis and investors over-optimistic hypothesis, due to the shares of the listed company mainly existed as the agency problem between shareholders and management in the foreign, so the research perspective of discount of private placement is also based on equity dispersed, while the listed companies has a high equity concentration and the phenomenon of a dominant in our country, the conflict of interest between large shareholders and minority shareholders is the main problem of the listed companies in our country, so some theory is not suit for the capital market of our country. The research of domestic scholars on the phenomenon of discount is mainly based on the conflict of interest between major shareholders and minority shareholders, the most people think the major shareholders has power to maniulate the pricing, so the discount rate of private placement in which the major shareholders participate is higher than others, big shareholders can transfer wealth of listed companies through a lower price, the they can damage the small shareholders’ interests, according to the results of offering discount rate model in this paper, under the condition of all samples,there exists a significant correlation between release object, company size, issuing scale and offering discount; Under the condition of major shareholders participating in the subscription, the difference of subscribe proportion and the ownership significantly influences the offering discount rate.The other problem of private placement is the announcement effect. This paper calculated the cumulative abnormal return through the event study method, it is concluded that the capital market also has the announcement effect in our country,in addtion, this paper summarizes the domestic and foreign research achievements about the announcement effect, and puts forward the hypothesis accord with the characteristics of China’s capital market, it selects the corresponding independent variables, and establish the multiple regression model, the model results show that the distribution object, the discount rate, company scale, financial difficulties and tobin-Q values are important factors which influences the announcement effect.The research content of this article conclud the following six parts, each part content is as follows:The first chapter is introduction whicn mainly introduces the research background, research significance and the innovation of this article. After reform of non-tradable shares, more listed companies tend to select private placemnt to refinance in our capital market, but the author found that the listed companies general ly make a low offering price, and there are significant positive announcement effect in the short term, so by researing the factors of the price discount rate and the announcement effect, we can protect the legitimate economic interests of small and medium-sized investors, and prevent the illegal behavior of controlling shareholder.The second chapter elaborat the research achievements about private placement. Abroad scholar mainly expound the developing course of theory from the monitor hypothesis, information asymmetry hypothesis, management opportunism hypothesis, restricted period hypothesis and investors over-optimistic hypothesis; Domestic research literature is inclined to research pricing factors and announcement effects, in view of the theory research in China is not yet mature, in this paper, we mainly reviewed the research literature.The third chapter define related concept, and expound the event study method which is used in the announcement effect.The fourth chapter is the research design, we select eligible sample in the case firstly, ensure whether there is a high pricing discount phenomenon through summarizing previous literature in our country, and find the main factors affecting the offering discount. Second, we calculating the average excess return rate and the average cumulative excess return rate by using event study analysis,so we can determine whether there is any announcement effect in our country,then we analysis the influence factors of the announcement effect, and design the offering discount rate of regression model and the announcement effect of regression model.The fifth chapter is about the analysis of the empirical results, we estimate whether the conclusion consistent with the above assumptions through the relevant statistical tests of two models, thus proving hypothesis or not.The sixth chapter summary of above theory and empirical analysis, then get the research conclusion, policy recommendations and research limitations.Based on the research of the domestic scholars’ relevant literature, we found that most scholars choose the plan announcement day as event day, few scholars choose announcement day as the event day. Therefore, this article selects the announcement day as event day, complement and perfect the deficiency of the domestic related research, and supply the majority of investors theory basis of investment decision in the event period.