Research On The Major Shareholders, Private Placement And Corporate Stock Price

Since May 8, 2006, the China Securities Regulatory Commission promulgated measures for the management of securities issuance of listed companies, private placement as an institutional innovation has nine years of history in our country until 2014. During the practicing of private placement, major shareholders of listed companies participated in it generally. Major shareholders could provide related financing for the listed companies to help the group reconstruction, also, they use non-cash assets to subscribe new stock of private placement could strengthen their supervision and controlling of company to enhance the company`s performance. Therefore, major shareholders play a quite important role of private placement.This article choose event study as study method, selected listed companies which took private placement during May 1, 2009 to December 31, 2014 in China’s A-share stock market as research samples. Dividing the object of private placement to research stock reaction of listed companies after private placement, and especially research the stock reaction when the private placement object was major shareholders. Concluded that the short-term stock reaction and long-term stock reaction both performance better when private placement objects are major shareholders. Besides, in order to achieve further study of long-term stock reaction when private placement objects are major shareholders.,this article divided subscribing way of major shareholders as cash and non-cash assets, and discovered that long –term stock reaction was better when major shareholders subscribe the new stock by non-cash assets.