Research On Financial Effect Of Introducing Strategic Investor By Private Placement In YN Company

Since Administrative Measures for the Issuance of Securities by Listed Companies wastaken in2006, the financing scale of private placement implemented by listed companiesexceed the total financing of public offering. Directional issuance is a issuance systemintroduced from the experienced overseas securities markets, compared with other equityrefinancing ways, it has the characteristics of simple and easy. Therefore, this system soonbecame the favor of listed company and securities markets at the begin, and gradually becamethe main way and means of equity refinancing of listed companies in our country after thereform of non-tradable shares. As a large pharmaceutical enterprise of Yunnan, along with thecomplicated external economic environment, increasingly powerful competitors, the demandof government and society to YN group company is higher and higher. It is necessary to YNcompany to explore a new way of growth, to seek a wider development space through capitaloperation. The private placement is a good start for capital operation.This paper researches the financial effect of introducing strategic investor by privateplacement in YN company, based on the perspective of business performance and share pricevolatility, combines the methods of case study, comparative analysis and event study. In thefirst part, it shows the research background and significance of this article, expounds thedomestic and foreign literatures of private placement. In the second part, it explains what isprivate placement and four patterns of private placement, next expounds the principle ofprivate placement and how to make the purchase, then analyzes the present situation ofprivate placement in our country. After that it introduces YN company and analyzes thebackground of introducing strategic investor by private placement, including the company’sbasic situation, the company background and industry background during private placement.In the fourth part, it analyzes six years (2007-2012) data of YN company on the basis of forecontent, in order to know the financial quality and capacity, and analyzes the short-termmarket reaction through the event study. At last, make a conclusion through research, and putforward policy suggestions.Domestic research on the business performance of private placement is not much, mainlyon the empirical research. This paper uses a case and realistic way to analyze businessperformance of introducing strategic investor by private placement, although just one case,and not universal, but I also hope that through the research on financial effect of introducing strategic investor by private placement, the conclusion can play a certain reference functionfor more similar enterprises to make purchase decision.