Empirical Research Of Chinese Listed Companies’ Seasoned Equity Offering

Under the SFC statistical data show that between1998and2011, China’s equity refinancing scale (SEO) by36.477billion yuan in1998, quickly rose to484.248billion yuan in2011, an increase of more than12times. The size of the SEO is bigger than the IPO.SEO becomes important sources of funds for listed companies. Which way of SEO is better? While abroad, scholars have done a lot of research, but so far inconclusive. The fewer domestic scholars also did not come to a unified conclusion. Therefore, further study for such problems is needed. Research on this issue, to enrich the existing company equity refinancing theory, more conducive to optimize the choice of listed company equity refinancing decision-making, at the same time can improve our equity refinancing institutional unreasonable, in order to improve the market efficiency, provide a theoretical basis for the optimal allocation of resources.This paper includes three parts:Part I:Definition in this study as well as theoretical and literature, including the chapter1-3of the paper.Chapter1:Introduction. Brief introduction to the background of the topic as well as the study of the theoretical and practical significanceChapter2:Introduction to the Theory and Literature Review. We give a comprehensive summary of the theory of SEO and analysis the applicability of these theories in China.Chapter3:Introduction of the status of our SEO.Part Ⅱ:An Empirical Study. This contains Chapters4and5.The analysis of short-term announcement effects and long-term effects of the allotment and issuance of two SEO ways.Chapter4:Empirical Analysis of the announcement effect of SEO with Event study methodology。Chapter5:An Empirical Analysis of long-term equity refinancing. Using chart analysis to give comparative analysis on the long-term performance of the rights offering and placement of shares of listed companies.Part III:Conclusions of this study. We summarize this study to draw some final conclusions and give associated policy recommendations for the problems.The paper has made some contributions:1. Since few scholars have studied the choice of two ways of SEO, we consider this problem as the goal of this study.2. The paper gives a new way to decide which way of SEO to chose by comparing the announcement effect in short term and the performance in long run of the listed companies.3. The paper describes the equity refinancing theory all around and makes comments on them. And the paper also tries to analysis the theory which is suitable for China’s listed companies.There are also some difficulties in the paper:1. The divide of long-term. It is too short for the paper to make three years as a long-term. Someone else may draw a different conclusion in a longer term, such as five or ten years.2. The data is still too small, although we are trying to select more data. This may also have some effect on the conclusions.3. The paper doesn’t take convertible bonds in, which may have some influence on the results.In a word, limited by the capacity and knowledge, the paper may have some problems. I truly hope that scholar who is studying on this subject can give some critical advices.