Research On Seasoned Equity Offering Methods And Performances Of Listed Corporations

With the development of Chinese stock market, equity financing has become listed corporations’ main source of the financing. This paper aims to elaborate the issue from two aspects. One is theoretical on influence reasons of their choice on financing. The other is empirical on their performance after seasoned equity offering. Meanwhile, describes the current situation of China’s equity financing. In order to put forward some useful suggestions,having a thorough analysis current situation of listed corporations’ option of equity financing.This paper mainly follows the line of “research background, literature review, analysis of the current situation, ranking orders of listed corporations, conclusions and suggestions”. As a theoretical basis, introduced the domestic and foreign theories about seasoned equity offering and the performance of listed corporations in A-shares market of China. And then analysis the SEO market on the current situation and the mainly developing trends by means of graph description and comparison in order to provide a background for my following empirical study on the issue. Empirical sample mainly on 1731 listed corporations on A-shares in2010-2013 compares with the companies that have raised funds by SEO. Theoretical methods include factor analysis and mean analysis intending to explore the effect of different offering manners and ranks of corporations.Through the analysis of the overall scale and current situation of SEO market in China in2008 to 2013, the subsequent conclusions are:(1) Listed corporations in China’s A-shares have a obviously preference of private financing. From the proportion of different kinds of SEO options, private financing accounted for the most share of the market among rationed shares, public offering and convertible bonds, which means Chinese listed corporations are still keen on prate financing.(2) After analysis of three different manners of SEO in 2011 and2012, along with the comparison of their ranks, conclusions is that efficiency of SEO is not high in our country. According to the conclusion, this paper put forward corresponding suggestions and countermeasures. Frist, market regulation including market supervision and the introduction of other ways of financing is crucial. Second, enhancing of corporations’ value and efficiency is also necessary. Compared with the financing manners and behaviors of foreign listed corporations, enterprises in China tend to prefer equity financing especially private financing. Apart from the unique political system, Chinese stock market has a really short history about only twenty years that developed from the ground up. Listed corporations have undergone tremendous changes in the manner of equity financing after split-reform,indicating that China’s capitalization of market is enhanced. After reviewed on the history of developed capital markets, there is still a long way to go for China’s stock market. Besides,under the background of high-developed capital markets, overseas scholars have done a large number of thoroughly and deeply empirical and theoretical researches on the choice of financing for listed companies that has already from a systematical mechanism. Take the equity financing of listed complies after split-share reform into consideration, we should admit that China’s capital market development is relatively lagging behind. Improvements may come with learning from Europe experiences.