The Analysis Of The Influences On Operating Performance Of Listed Company Following Rights Issues

Since the1993rights issue carried out rapidly in China, placement financing is still the main form of listed companies in China equity refinancing, played an important role in China’s listed companies to seek further funds required.In the market economy, the development of enterprises can not be separated from stable resources, financing has become a top priority for the development of enterprises to consider subsequent development depends largely on the ability to refinance. However, throughout the financing situation of listed companies in recent years, the prospects for the development of the enterprise late but not optimistic. Not only the number of allotment and raise funds has declined, the old corporate performance and market reaction after the completion of the rights issue. Placement financing to some extent, to the listed companies bring some negative effects, At the same time, the raise funds listed company, in the use of funds raised configuration, often there is a change in capital investment, of blind investment or idle funds phenomenon, which lead to inefficient use of funds, not only resulting in a waste of resources, but also affect the long-term performance of the listed companies. Many companies after the completion of the rights issue, the performance of the company in general decline.Listed companies process a lot of questions, many companies in order to obtain financing qualifications in order to meet the rate of return on net assets in line with the placement requirements on corporate assets or net profit adjusted by means of earnings management.Combined with many enterprises in order to obtain the funds raised blind placement, resulting in corporate capital expansion too fast, shook investor confidence in the firm’s investment, in turn lead to selling shares at stock price declines, to enable enterprises to shift from blue chip stocks to underperformance and other adverse effects. The study also found many listed companies in the placement before the use of proceeds from no subsequent detailed analysis and planning, and configuration to raise funds in the latter part of the investment decision-making is not careful, blind to establish investment projects, or seek an excuse to shelve the project resulted in idle funds, kinds of lack of good investment projects Rights Offering will inevitably destroy the capital market allocation of resources, so that the funds can not flow to be able to produce the good effective projects up, it also undermines the interests of the majority of investors.In this paper, based on the analysis of domestic and international placement financing theory, changes in the performance of the listed companies in China placement financing related to the theoretical analysis and empirical testing,04-09years companies relevant financial data is selected for testing,by factor analysis and multiple linear regression model, empirical analysis, the impact on the performance of the allotment of shares of listed companies. Based on the empirical results, this paper proposes the corresponding policy recommendations to increase and standardize management placement financing behavior of listed companies in all aspects.