The Analysis On The Influence Factors Of Equity Private Placement Of Listed Companies In China

Since the year 2015, our stock market volatility, investors become more cautious when they would invest in the secondary stock market. But private placement has become interested in institutional investors such as securities and fund in key areas. National data shown, the financing amount of SEO has exceeded IPO. Especially, financing scales of private equity amounted to RMB 1372.3 billion in the year of 2015, while the total financing scale of IPO only RMB 157.83 billion, only 11.5 percent of the private equity.Private equity is an important source of capital after the IPO. In the capital market, private placement, public issuance and rights issue together constitute three main financing of the listed company. The regime of private placement appeared in our country relatively late, starting from the 2006 China’s equity division reform successfully completed, but developed very quickly, since the beginning of the introduction of private equity has become the most important equity refinancing of China’s listed companies. Lots of foreign scholars has studied on the problem of the behavior of SEO to varying levels, while they have deeply analyzed the existence problems and the real motives of private placement. At the same time, domestic scholars started studying it late, and there are few studies on the real influencing factors of the private placement. Because of our security market starting late and the private placement appearing only ten years time, domestic research lacks a large amount of empirical data. This paper is based on the latest theoretical and empirical research on our stock market, and the characteristics of our special financial market, and deeply explored the real influencing factors of the private placement for a deeper theoretical and empirical analysis.The paper focuses on corporate financing features, controlling structure, asymmetry information as well as risk to influence the behavior of private placement for the deep theoretical and empirical analysis. With the latest sample data of listed companies of stock markets of ShangHai and Shen Zhen which refinanced equity with SEO from 1999 to 2015, and then built up a Logistic model to empirical analysis, we study the influence factor of private placement. The result indicates that corporate financing features and control structure are the main influence factor for the selection of SEO. Furthermore, institutional factor has made deep inroads into the selection of companies’ SEO under the specific system environment in our country. By the robust test of 2006 to 2015, non state-owned firms are likely to choose private placement.