Study On The Influence Of Listing Corporation Interim Operating Performance After Directional Issuance

Private placement is an important instrument for equity financing for listed corporations. By collecting 254 listed corporations that conducted private placement successfully during 2007 and 2008, this paper focuses on the change of operation performance after private placement. We use principal component analysis (PCA) method and multiple liner regression model to test the impact on operation performance of controlling shareholder participation, stake of largest shareholder and type of new-issued shares’purchasing. Then we use descriptive statistics method to analyze the change of operation performance in 5 years pre-and after-private placement. The results are following:Controlling shareholder participation can’t have a positive impact on operation performance without putting asset into listed firm. There is a negative correlation between operation performance change and pre-private placement’s stake of largest share holder. When controlling share holder put asset into listed corporation by private placement, operation performance will witness an obvious improvement after private placement. The research shows that investors should focus on whether there exists asset put-into when private placement.