The Study Of The Relationship Between The Private Placement Of New Shares And Operating Results Of Listed Companies

In April2006, advancing with the split share reform, China’s securities market financing function is restored, the listed company equity refinancing (including private placement) function can also be restored. Until May2006, with the Promulgation of the listed securities of the Company issued Administrative Measures,Private placement of new shares in China began to develop. And now,The private placement of new shares is the most important equity refinancing tool. There are many advantages of private placement of new shares, for example, the issue of the threshold low, short cycle, high efficiency, and listed companies have preference for the private placement of new shares.May2006to December31,2012, there is a total of1012cases of equity financing (including public issuance of new shares, rights issue and private placement of new shares) Case in China’s A-share listed companies,2.24674trillion yuan of funds is raised; In the same period,The number of listed companies taking private placement financing is838, accounting for82.81%, financing amounted to1.769069trillion yuan, accounting for78.74%. So, in terms of quantity or in terms of the scale of financing, private placement in equity refinancing occupy a dominant position to become a listed company equity refinancing most favored financing tool.The rapid development of the private placement in reality has attracted the attention of academics, Chinese scholars began to study the private placement of new shares.Overall, however, the study of the Chinese scholars are mainly concentrated in the transfer of benefits and effects of the private placement in the short-term, Few scholars study the relationship between the private placement and results of operations.What is the relationship between the private placement of new shares and the operating results of the Company,Private placement can enhance the company’s operating results or not? This paper study the relationship between the private placement of new shares and the results of operations of the Company in terms of theoretical and empirical combing with the practice of our private placement,The theoretical aspects of the theory, first introduced asymmetric information theory, regulatory theory and signaling theory analysis. Theoretically analyze the impact of different types of private placement and a different way of private placement to subscribe to the operating results of listed companies. Empirical aspects, the paper selects the1473A-share listed companies listed on the Shanghai and Shenzhen Stock Exchanges as the study sample, which includes142listed companies in2010private placement. Select the operating margin, net profit margin of sales, net profit margin of the total assets, net assets, net profit margin, earnings per share and net assets per share six financial indicators to measure a company’s operating performance. Using factor analysis to build operating results score model, and then sample the company’s operating results in the year prior to the private placement and one year after the score, and thus performance ranking performance composite score calculated by the model, and finally by comparinganalysis to analyze the relationship between China’s listed companies private placement of new shares and operating results of the Company before and after a two-year operating results ranking.The empirical results show that:(1) the implementation of a private placement of the company’s performance is not better than no implementation of the private placement of the company’s performance;(2) major shareholders or related parties involved in the private placement to enhance the performance of the company is not more obvious;(3) subscribed assets ways, the company’s results have improved significantly.Compared with previous studies, this paper following contributions: first,broaden the perspective of the private placement financing, Secondly, Enrich the company’s equity refinancing theory.Thirdly,in practice, can help investors make the right investment decisions and help regulators to improve the private placement of new shares policy and Provide a practical basis for listed companies to select the mode of financing.