The Empirical Research On Announcement Effect Of Private Placement On Chinese Listed Company

Since equity division reform was conducted in China,private placement has been regarded as an important way of equity refinancing.In recent years,with the development of capital market and the demand of diversification,private placement is no longer just as a means of refinancing,at the same time it becomes the measure of capital operation in financial market and is given a new mission.Chinese scholars for the study of the effect of private placement announcement are wide-ranging but still have some limitations.On the one hand,the sample data set prior to 2010,during this period,the performance of the stock market is still not fully get rid of the influence of the financial crisis,the overall data is lack of representative.On the other hand,the study of private placement announcement effect mostly regards the data as a whole,conclusion is confined to have positive announcement effect,but lack of specific division and the comparison of difference between raising money purpose.So from the perspective of the above two,this paper made innovation and complement in the study of private placement announcement effect,and answered the following three questions,the private placement was a good news or bad news for investors?Would the different contents in plan have a different effect in private placement announcement?After the first announcement,the effect of private placement announcement will still exist?Therefore,this paper uses the event study method,through the manual sorting data,classifying the Shanghai and Shenzhen A shares in 2013 and 2014,and according to the raising money purpose,the sample was divided into the following six classes,bringing the strategic investors type,merger type,injecting assets type,supplement current capital type and item type.Through the test of average excess returns and the average cumulative excess returns during the ten days before and after the announcement day,we answered the second question above.Bringing the strategic investors type and merger type have a strong and positive market performance and generate higher returns compared with injecting assets type,supplement current capital type and item type.In addition,the comparison between the first pre-plan announcement day and the securities regulatory commission approval announcement day based on the overall sample data,we answered the first and the third questions above.Private placement was a good news for investors.At the same time,the announcement of private placement achieved the most significant performance during the first pre-plan announcement period,as the process continuing,good news gradually digested by the market,and left few influence before and after the securities regulatory commission approval announcement day.The conclusion of this paper can help investors have a more comprehensive understanding for private placement.Guide the investors to have a rational analysis,allocate the capital in a rational way.In addition,provide the basis for regulators to scientific decision,and strengthen the dynamic regulation of market,what's more,regulate the issue behavior of listed companies reasonably.