Support Research On The Effectiveness Of Seasoned Equity Offering

Seasoned equity offering, together with additional stock issue, rights issue, are the main way of equity refinancing. By the end of 2014, the number of the issue have reached to 223, the financing scale of the issue have reached to 350 billion. Confronted with the frenzy of issuance, it is inevitable that the academy and the society put their mind on how issuance would affect the performance of listed companies.With a review of the literature found that domestic and foreign scholars study focused on the market effect, the changes in short-term performance after seasoned equity offering, and they main used simple regression model to explain the secondary to the performance of the relevant factors. Comparative study between public offering and not public offering, and impact on the company’s long-term performance did not see before.This paper analyzes how the seasoned equity offering impact on the company’s long-term performance, by using regressive method, based on data from 2007 to 2011 in in all seasoned equity offering. Assuming that seasoned equity offering in those days, for t years, study from a total of five years before and after 3 years of secondary public offering group and public issuance of long-term benefits and find public issuance is a negative influence to enterprise long-term performance. In order to study why the it cause a downturn of the enterprise long-term performance reasons, this article from executives shareholding, surplus management, the raised fund change and refinancing scale and puts forward to hypothesis, through grouping test respectively set up multiple regression model. We find that the company executives shareholding ratio is not high, the surplus management, funds for change and high proportion of refinancing,which is cause the decline in long-term performance after a public offering. Finally, according to the empirical results in this paper, We put forward relevant suggestions, from the strengthen and improve the system of executive shareholding, the innovation funds for public issuance policies, strengthen the supervision and put forward relevant Suggestions, to regulate the behavior of listed companies in our country public issuance provide certain theoretical and practical significance.