An Empirical Study Of The Subscribe Motivation And The Means To Get Profits Of The Controlling Shareholder In The Private Placement

In our country, the academics working on the behavior of controlling shareholder. The study found that controlling shareholders use its influence of he listed company to transport benefits to itself. Controlling shareholders may participate in the decision-making of listed companies directly or indirectly. In the whole decision-making process controlling shareholders use their control ability to inject their subjective wishes to damage the minority shareholders’benefits (the conflict between shareholders) as well as the benefits of listed companies. So, for the protection of the interests of minority shareholders, the studies of the behavior of the controlling shareholders are indispensable.Private placement financing is welcomed by listed company, which has been used more frequently than the placement, public issuance. Private placement as a refinancing is becoming widely used by f listed companies. The controlling shareholder subscribe more frequently in the Placement than in placing and open offer of performance. Placement not only meets the needs of listed companies to raise project funds, but also can make the other assets of the controlling shareholder listed. From the market performance, the controlling shareholder of the subscription usually brought about positive effects of price. Did the active participation of the controlling shareholder in the private placement will herald a new performance by controlling shareholder of the private placement? Whether the profit motivation and the means used to obtain the benefits is different with public issuance, different placement? This requires a further study. This paper argues that the study about the behavior of the controlling shareholder in the private placement is not sufficient. Manifested of the controlling shareholder in the private placement was significantly different with their past behavior. In such a situation, this paper attempts to explore the deficiencies of the existing literature, and investigating the Interests motivation and the means to get benefits behind the behavior of the controlling shareholder to rich deficiencies of the existing theories, so that the majority of investors can understand the behavior of the controlling shareholders of the private placement more clearly.In this paper, we get two hundred and eighty-six samples which successfully completed the private placement and84samples which the Controlling shareholders use assets to subscribe for shares, we attempts to answer the following questions:Whether the the purpose of controlling shareholder make a decision of subscribte for share is to improve the ratio of their control, and to access the benefits. whether the controlling shareholders use pricing tools (SEO pricing means and asset pricing means) to get benefits after controlling shareholders subscribe for share.Each chapter of this article is organized as follows:Chapter1:IntroductionThis chapter describes the background of this paper detailly, in order to determine the ideas of this paper and later build a framework for the entire study. This chapter also describes the theoretical and practical significance of this study, and also describes the study sample and research methods.Chapter2:Literature ReviewThis chapter sort the relevant literature on the placement, and recalled the and behavior of the controlling shareholder and the results behind the behavior. This chapter summarizes the relevant literature of private placement from two perspectives:First, the market reaction of the controlling shareholder subscribe behaviors; Second, the relationship between the controlling shareholder’s subscribe behaviors with the price of the private placement. This chapter provides a theoretical basis for the empirical analysis later.Chapter3:The related systems of private placementThis chapter sort out the relevant the about private placement which aims to elaborate the concept and importance of the private placement. This chapter describes not only the private placement regime, but also compare the private placement with the public issuance and allotment. This chapter also compare raise funds with asset reorganization for the purpose of private placement, focuses on the two different pricing mechanisms. This article is about the private placement regime launched a special policy research, so this chapter is a prerequisite for later study. Chapter4:The behavior of the controlling shareholder in the private placement in behavior.First, we summary three kinds of interest motivation which attract the controlling shareholder to subscribe for share. Thereby we elaborated the controlling shareholder how to use pricing means to access profit in the private placement. This chapter reviews the controlling shareholder of the private placement behind the behavior of the interests of the chain, the theoretical analysis of this chapter is the theoretical basis of the most direct empirical analysis.Chapter5:the controlling shareholder’s subscription motivationsThis chapter use empirical research to study two aspects of the profit motivation of controlling shareholder:First, whether the controlling shareholder consider the purpose of improving control to subscribe for shares in proportion? Second, use the Return on assets to measure the performance of listed companies, Market rate of return to measure the extent of the value of equity value to analysis whether ontrolling shareholder subscription line position on the results of the change will affect the market rate of return.Chapter6:profitable means of controlling shareholderThis chapter use empirical research means to study whether the controlling shareholders Will use SEO pricing, asset pricing means to access profit after they subscribe for share. This chapter use discount rate of the issuing price to measure of\\the private placement price to analysis of the behavior of the controlling shareholder subscription and issuance of the relationship between the discount rate, and whether the subscription will increase the proportion of the controlling shareholder of the controlling shareholder profit initiative.Chapter7:Conclusions and study limitationsThis chapter summarizes the results of earlier studies, and the limitations of this study are described. In this paper.The main conclusions are as follows:(1) The controlling shareholder in the private placement subscribe for shares is for three profit motivations. Controlling shareholders subscribed for share obviously led to an increase in the proportion of its control. Willingness to subscribe for shares of the lower proportion of additional control over the former controlling shareholder with respect to the issuance of a higher proportion of the former controlling shareholders control more intense, prompting more controlling shareholders to subscribe in order to improve control over the size ratio. For the equity value-added profit motivation, the controlling shareholders subscribe for shares can improve the performance of listed companies, thus can enhance the equity value of listed companies.(2) Controlling shareholders subscribe for shares which can promote they use their control ability to affected listed companies in the private placement pricing decisions. So that they can obtain additional price lower. The more controlling shareholders subscribe for shares, the more possibility they use the control ability to get profitable. Therefore, the controlling shareholder’s subscription resulted in higher discount rate.(3) Controlling shareholder’s subscription and asset revaluation rate showed a positive correlation, That is why the controlling shareholder with respect to controlling shareholders do not subscribe lead to a higher rate of revaluation surplus:The conclusions of this study revealed the controlling shareholder use asset pricing pathways to get profit. When the controlling shareholders use sssets to subscribe for shares, the controlling shareholders will use their control ability to impact on listed companies choose asset evaluation agencies, so that they can select its favorable asset evaluation agencies, There was a significant positive correlation between reputation for the quality of its asset evaluation agencies asset and the appraisal report issued by the asset evaluation agencies which means that That is the reputation of the higher likelihood of poor asset evaluation agencies issued a lower quality assets evaluation report.The main contribution of this paper is as follows:In this paper, we use the Perspective (The controlling shareholders decide to subscribe for shares because of three kinds of benefits in the private placement) to analyze what is t the decisive factor Why he controlling shareholders decide to subscribe for shares in the private placement, and we see the private placement pricing and asset pricing as two means to get benefits by the controlling shareholders in the private placement. We Summarizes a chain of interests why the controlling shareholders decide to subscribe for shares in the private placement. This study broadens the level about the study of the behavior of the controlling shareholder in the private placement. Our study has a significant contribution to theoretical studies on the behavior of the controlling shareholder.Academia rarely involves the study on why the controlling shareholders use the asset pricing to get profits. And what is the way that the controlling shareholders use the asset pricing to get profits. Therefore, our study enrich the existing literature. Our study provided a new perspective for the scholars to study the phenomenon that the controlling shareholders use their Non-cash Assets to subscribe for sharesThis study exist the following deficiencies:(1) We don’t research on Investors institutions who is the important participants in the private placement. Whether the institutional investors’interests is consistent with the controlling shareholders or would have some checks and balances controlling shareholder. This article does not expand on this research, so lack of the research on this important investor will make our research in this paper has certain limitations.(2) In this paper, the lack of research on the role of the private placement in the company’s governance. This article only study how the dominant position of the controlling shareholder’s control ability affect the controlling shareholder’s decisions in the private Placement. But in reality, the controlling shareholder in asset pricing, additional pricing process should be abstained from voting, Independent Director role has become increasingly evident, gradually raise the level of corporate governance, the cumulative voting system so controlling shareholders have a certain control over the constraints.In the private placement, which is the role of corporate governance, Could have an impact on the behavior of the controlling shareholder? Further research is needed.(3) In this paper, there are some defects in the study sample. Since the data collection time costs, the paper only selected2009-2011successful placement of the sample, we did not include all samples after post-split share structure reform. Therefore, this study has some limitations conclusions...