The Impact Of Private Placement On The Management And Performance Of Listed Companies

After November2,2012public offering of shares of Zhejiang Shibao, untilJanuary8,2014there is a new treasure public offering of shares, in which up to14months of stopping the process of issuing new shares,the ways of listed companies’financing also quietly shift, during which the private placement have been expandingfrom183in2011to217by the end of2013. This change is causing concern of manyacademics and investors,it is also in doubt that private placement can really change theoperating performance of listed companies. Based on this problem, researchers havebegun to study the new situation under the influence of the private placement businessperformance of A shares, but less relevant literature about this, most of the literaturestudy will focus on: the impact on the company ’s share price placement, as well as theissuance of additional earnings management before impact purposes. Based on theformer ‘studies, the paper focuses on the placement of A shares listed on China ’simpact on corporate performance, and therefore, the study of this article has somereference value and practical significance.108in sample A-share listed companies in Shanghai and Shenzhen, the paperselected by screening and profitability indicators implemented in2011privateplacement, choosing solvency indicators, operational capability index, capacitydevelopment indicators and cash flow capacity of the five major aspects associatedwith13financial indicators, consisting of research systems, these systems can bemore comprehensive indicators which reflect the company’s operating performancesituation. In this paper, factor analysis of13indicators selected to reduce thedimension and then extract the common factor, factor analysis model is constructed,and then calculate the overall performance of the sample ’s score. By comparing thescores before and after the placement model,it concludes the private placement ofChina’s A-share listed company’s operating performance has not been significantlyimproved. It seems from the results of empirical performance of the company in2011the implementation of the private placement as not as optimistic, it falls instead ofincreasing, this phenomenon should arouse the attention of many investors. On thebasis of this conclusion, there are some relevant suggestions and policies: From a macro perspective, the listed companies should improve the information disclosuresystem after placement; improving the quality of investors, while making investmentsremain cautious at the same time; ensuring institutional investors inject assets aregood assets. These recommendations can circumvent some of the deficiencies in theprivate placement of listed companies, so that the operating performance of listedcompanies can have improve significantly.