An Empirical Study The Impact Of Equity Refinancing On Investment

Financing activities are necessary for the survival and development of company, refinancingis an important way to solve the problems of enterprise development and growth funds needed.Equity refinancing is an important way to refinance. The company’s equity refinancingbehavior affects their production operations and operating performance, which will affects theexpected benefits of the company stock. the purpose of investors to invest in the stock’s is togain access to the stock’s expected benefits, so to share the results of the company’s businessdevelopment, the operating of company affect investor’s investment behavior and decisions,in the other hand, investors in turn affect the company’s operations. Therefore, the study of theimpact of equity financing on investment value has great practical significance. This paperdescribes the basis theories of equity financing and investment value, analysis the theoreticalimpacts of refinancing companies on the investment value, and proposed three hypotheses onthe basis of theoretical analysis. In this paper, the Shanghai and Shenzhen A-share listedcompanies are selected for the sample data, a total of four years data before and after SampleCompany’s refinancing behavior are used in descriptive statistics analysis and correlationanalysis., and this paper also builds three numerical model to measure the changes ofinvestment value in the situation before and after the financing, then uses the analysis systemSpss to test the regression data and the relationship of variables, Finally, based on theconclusions of the analysis, this paper presents research conclusion, and concludes indicationsof the paper.