The Company Features Impact On Private Placement Discount Of Chinese Listed Companies

Private placement discount is a phenomenon that a listed company to meet the requirements of a few specific non-public offering of shares of investors, and the issued price is lower than the first day of the post-market prices. View from the company’s financial situation, the private placement discount is a short-term excess earnings phenomenon, which is considered as a violation of the efficient market hypothesis. However, it exists in the capital market of many countries.This paper researched the influence of the company characteristics to the orientation of additional discounts from theory of asymmetric information, agency theory and signal transmission theory, aiming at the characteristics of China’s capital market and sampling 579 implementation for the sampled companies from July 2006 to October 2014 in Shanghai and Shenzhen A-share private placement.The study found that:(1) The scale of companies can reduce the degree of information asymmetry and uncertainty,which is consistent with the hypothesis of asymmetric information, and has a significant negative correlation with the private placement discount rate.(2) Financial leverage delivered a positive message to the value of the company in the Chinese market, which has a significant negative correlation with the degree of the private placement discount.(3) the profitability of listed companies and private placement discount is negative.(4) due to the dominance of China’s listed companies is serious, there is a large shareholder of opportunistic behavior by private placement transfer of benefits, but there are significant "U" shaped relationship between the interests of transport and concentration of such shares of listed companies.(5) the company’s ability to grow better, the better the company’s prospects, expected future high income, the more likely it through private placement discount to raise funds. Combining empirical results and their analysis, we propose to improve the corporate governance structure,clear pricing benchmark, strengthen supervision of price manipulation policy proposals to regulate the private placement market.