Short-term Stock-price Effect Of Private Placement Of China’s Listed Companies

Since 2006 China’s listed companies run the official launch to specific non-public offering of new shares, Private placement has become a new option for refinancing of listed companies.And quickly became an important subject of academic research. The rise in domestic private placement is not long and can be regarded as a new way to refinance. The "management approach" of China Securities Regulatory Commission has fewer constraints to private placement. Compared to other refinancing, it has less restrictions, simple and flexible features.Therefore, it has great significance to research the stock-price performance after private placement of listed companies. With the gradual improvement of the stock market system,China’s capital markets also in line with international standards. There are lots of researches on private placement of listed companies. Domestic and foreign research from the private placement of listed companies stock-price effects found that private placement of listed companies have a short-term price effects, namely the announcement effect, showed a positive effect of stock-price. More than three years long-term stock-price performance will be sluggish, more studies have shown that long-term stock-price effects in contrast to the announcement effect. This paper wants to study the short-term stock price effect within one year after private placement of listed companies in china. Based on China’s unique social and market background, introduces the analysis of the listed company ownership. Through the classification of listed company ownership, put forward the hypothesis. And select 250 listed companies that had the implementation of the private placement between 2008 to 2013 as samples to establish the multiple regression model for empirical research.