The Effects Of Private Equity Placement On Long-term Wealth

Since2005, China’s implementation of the split share structure reform, with the split share structure reform Chinese Commission issued the "management measures" issued securities listing Corporation, the measures from the beginning of May8,2006. With the promulgation and implementation of the law, China listing Corporation began to change the financing preference of equity financing, equity financing from the two secondary markets mainly by rights and public issuance of new shares for financing into more directional issuance of new shares the equity financing. Only in May8,2006to December31,2013period, Chinese securities market has885listing Corporation in the private placement of new shares of the total equity financing, private placement equity re financing reached2,137.593billion Yuan, this period China directed through the issuance of new shares of listing Corporation financing amount exceeds the IPO (initial public offering) total1,781.092billion Yuan financing.With the Chinese securities market has developed rapidly in recent years, market participants began to pay more and more attention to domestic listing Corporation directional additional financing long-term wealth effect of shareholders, at the same time, this private placement financing methods more and more attention by the academic and practical circles, research orientation of additional articles began growing. These studies of directional including announcement effect of private placement, placement of the discount rate and to determine the additional orientation, discuss the interests in the process of transportation problem, the differences and advantages between private and public issuance of shares and, the listing Corporation performance impact of additional orientation. At present, the domestic research on private placement mainly concentrates on the case analysis and theoretical study of the additional orientation, the use of empirical data on market orientation of additional analysis research of this aspect is less. Due to long-term shareholder wealth effects of private placement of this aspect, especially in the current Chinese stock market after the equity division reform under the background of full circulation, directional Chinese listing Corporation’s additional long-term shareholder wealth effect will be how, had fallen into financial difficulties the company can make the dead come back to life and is directed through the issuance a significant positive effect on the more and more scholars pay more attention to the long-term stock. In order to fully reveals China listing Corporation directed through the issuance of long-term shareholder wealth effects of new shares, deepen the understanding of market participants additional wealth effect on directional refinancing existing policies and institutional background, case analysis and theoretical study of directional add more empirical analysis in terms of reference, so as to provide theory and practice more evidence for the supervision department Chinese CSRC, formulate relevant two level of market financing, at the same time as the Chinese securities market on the controlling shareholders of listing Corporation to refinance the decision to provide more empirical data, and for all types of market participation investors additional orientation to provide more new enlightenment. In this paper, during the period from January01,2010to December31,2010in China A share market directed the implementation of additional shares of the listing Corporation refinancing data as samples, selected36months of data, using the single factor analysis and regression analysis to China listing Corporation long-term performance of private placement of new shares after the stock price, the long-term performance of the long-term performance of specific financial restructuring to implement directional add issuance of new shares and the stock price orientation based on financial restructuring for the purpose and non-financial restructuring for the purpose of issuing shares of new shares prices based on the comparison in the empirical analysis. The results from the empirical analysis show that:1) directed the issuance of new shares on the long-term effects of Chinese listing Corporation shareholders’wealth is positive.2) Financial restructuring type directional additional shares of listing Corporation long-term stock price performance is better than the non financial restructuring type directional additional listing Corporation long-term stock price performance of IPOs.3) financial restructuring specific purpose of listing Corporation based on directed through the issuance of long-term positive for the listing Corporation’s stock price, has positive effects on long-term shareholder wealth.This article can be divided into five parts, the first part is the background and significance of Chinese listing Corporation additional orientation, the current domestic and foreign related directional additional references and this article research orientation from the perspective of financial restructuring issuing long-term shareholder wealth effects of innovation based on are described; the second part is the specific application of the additional five kinds of directional China on stock market and three kinds of main directional additional theoretical analysis are described. The third part lists the sample data in this article how to select and data sources and the construction of variables in the model selection and model. The fourth part expounds the results based on financial restructuring orientation for the specific purpose of issuing and the empirical study of the relationship between long-term stock by single factor analysis and regression analysis. The fifth part from the initial hypothesis of financial restructuring orientation for the specific purpose of offering and put forward the corresponding policy recommendations.