Multivariate Analysis Of Equity Financing Rent

In this paper, the object of study is based on the IPO and the issuance of the listing Corporation in 2011, and then we use the current account and the cash flow from operating activities of the data in 2008, 2009, 2010 and the first big shareholder’s shareholding ratio and the proportion of independent directors produced by the listing Corporation in 2011. What’s more, we use the way of the TSFA(time series factor analysis) based on R language and assume the stable China’s equity financing policy, we try to research the relationship of equity financing rent(issue-rent and the listed-rent)with the first big shareholder, independent director, current account, cash flow from operating activities. The study shows that: in the IPO and the Secondary Public Offering,a correlation exists between the first big shareholders, independent directors, account,cash flow which from operating activities with the equity financing rent; the relationship between the equity financing rent is the most significant. The empirical results show that:the rent-seeking behavior of the largest shareholder is more concealed, on the other hand also shows that our system is more perfect; independent directors did not play the role of supervision and management of the behavior of large shareholders; shareholders tend to choose the regulation of open credit to meet the conditions of IPO and Secondary Public Offering, by this way to obtain rent. In view of this, supervision departments should strengthen the supervision of major shareholders, to make the behavior more obvious and increase the illegal cost; to give the independent director right to supervision and balance the illegal behavior of major shareholders by setting law. The supervision and auditing departments to increase to audit the current account management and cash flow of the listing Corporation’s activities, audit the inflow and outflow of capital strictly, try to avoid the activities of connected transaction to meet the conditions of IPO or Secondary Public Offering, to obtain equity financing rent finally.