The Research About The Excess Return Of "Outside Investor" Gains In Private Placement Through The Primary Market

In the period from2006to2013, earnings from targeted placement in which the outside investors in the primary market participated is significant. The result after researchers discuss the motivation of the purchase may involve the problem of interest transportation, the improvement of the corporate governance and the mechanism on discount rate, etc. My research focuses on "outsiders", namely including institutional investors, different from the "insiders", including company shareholders witch control the company. And why the excess yields that "outside people" obtained from the primary market to participate in the private placement I try to answer in this paper.First using correlation analysis and regression analysis,I analyze the purchase of individual stocks data In the period from2006to2013. Then the factors that have good correlation with the yield in correlation analysis are chosen to be the factors in regression analysis, to analyze excess earnings the institutional investors and other specific investors.Empirical exam may give answer that the directional secondary distribution phase of the basic situation, market valuations and preference, consider raising scale and proportion of secondary will have significant influence on investment income;analyzing issuance plan announcement effect, I found that the excess yields on discount rate is significantly positive correlation, and excess returns before issuing and big shareholders’subscription ratio have strong correlation, But not sweet in relative issue reflects a strong correlation, that before the issuance of the indemnification in general have not obvious reaction on the share price.Then I give the strategy the "outsiders" can make use of,after we make the analysis above.First,it is good chance the "Outsiders"to participate targeted placement,when there is bear market.second, There are also opportunities when issuing scale is small and the issuing Accounts for high proportion.Thirdly,the conpanies in emerging industries may give higher discounts,and meantly ensure the higher the investment returns.In conclusion,assuming that the market situation to continue, in the primary market, how the "outsiders"participate.At the macroeconomic level, the priority participate when the the environment is stable. At the industry level, optimizing choice is emerging industries based on the historical experience, the excess earnings depends mainly on the higher discount,and it associated with industries.At company level,the small company is priority, the smaller the issure scale is and the higher proportion issuing Accounts for,the more excess earning the "outsiders" obtain.