The Study On Influencing Factors Of Private Placement’s Discount Rate And Relation Between Discount And Shor-term Break

Private placement has becoming more and more popular among the listed companies and investors since from CSRC published Administrative measures for the issuance of securities listing Corporation suspending to now on. However, Private placement has also been an important way for the large shareholder to expropriate according to the related researches of the previous scholars, so that will violate minor investors and our capital market. And the core factor is discount rate during the whole private placement. So our main substance is about influencing factors of private placement’s discount rate and relation between it and short-term break. In our thesis, we mainly use both normative analysis and demonstrate analysis. Through collecting and summarizing related research results, we make some theoretically analysis, and then we make our hypothesis and built multiple linear model to demonstrate. After this we also do some research on the relationship between discount rate and break.We use private placement data from2010to2013, and built multiple linear model and Logistic model to study influencing factors on discount rate and it’s relation with break. We found there is significant inverse relation between discount and the proportion of large shareholder buy, but the minus of large shareholder buy and shareholding before offering is significant positive to discount; the second shareholder has no significant relation with discount, as the proportion of the share is too low. Besides, the concentration of the share is positive related to discount. For the further study we found the break is mainly influenced by discount rate in a short period, and both discount rate and the offering proportion on tradable share make the sense in long time; the liquidity and roe seems has no significant relation with break in the short run, but in the long run, liquidity works.According to our results, we present the following suggestions:Do some reforms and changes on ownership structure; Further clarify the definition of "pricing benchmark day"; Take control of the amount of non-public offering, and etc.