The Research On The Effect Of Private Placement Market Timing In Western Region China

After the non-tradable shares reform, the private placement has become one of the most popular way of equity refinancing listing Corporation by virtue of its advantage of "one simple and three low", and obtained the rapid development in recent years.However, due to China’s construction of the western capital market area is not perfect, the listing Corporation private placement costs greatly, leading to low economic efficiency of enterprises, thereby affecting the company’s profitability and the ability of sustainable development. Therefore, in order to promote the sustainable development of the western region of China, also for the market-timing theoretical research of the private placement riching securities market, it is necessary to further research on the effect of private placement market timing in western region China.In this paper, the research sample is the listing Corporation in western region China. It used the research methods of combining normative research and empirical research, qualitative analysis and quantitative analysis, through the domestic and foreign relevant research literature, a systematic review of the traditional financing theories and market timing theory, and analysed the present private placement financing situation of listing Corporation in western region China. This paper elaborated the market timing behavior and the effect on the capital structure, put forward 7 hypotheses, using multiple linear regression method, analyzed the effect of private placement market timing in western region China, this thesis drew the research conclusion: compared with institutional investors, listing Corporation in western region China existed market timing behavior additional to the major shareholders, but the act only in the short term impacted on the capital structure of the company, and the impact on the company’s long-term capital structure of not more than two years. Finally combining with the research process and the conclusion, this paper put forward corresponding countermeasures and suggestions from the government level, the listing Corporation level and the investor level, in order to directional evaluation of listing Corporation in western region China from the theory of additional market timing behavior, and providing certain reference for the protection of the interests of small shareholders.