Analysis Of Influencing Factors On The Return Of The Private Placement

Private Placement is one of the most popular way of refinancing by listed companies. At the same time, Private Placement is an efficient over listing method. More and more investors are attracted by the relative steady return of Private Placement. However there are also controlling shareholders injured the interest of privates; or the result of the company is much less impressive than expected. The price became much higher than before, which lower the discount ratio. As passive investors, they can’t exert appreciable impact on the operation of the listed companies. All of these problems drive us to choose key references.The research of this paper is based on the private achievements, which involve controlling shareholders tunneling、factors impacting the discount rate and so on. Through the analysis of the impacted factors of the return, the author founded that the size of the listed companies^the proceeds、the insider trading all have negative influence on the CAR; the fraction debt ratio both have the positive influence on the CAR. What’s more, the negative factors show greater influence than the positive ones. As for the practice of investing, the meaning is to help the investors to focus on the key ratios to avoid specific risk and improve the possibility of positive CAR.This paper is divided into five parts:chapter1, there is the introduction of the background, and the review of the achievements from abroad and domestic; in chapter2, there is the description of the characters of the SEO in China; in chapter3the author analyzed the factors that impact the return, and designed the explanatory invariables; in chapter4the main content is empirical test. It involves data sieving、 the statistics、correlation tes、logistic regression analysis and back test. Chapter5is the conclusion and the supplement.