Research On Announcement Effect Of A-share Listed Company's PrivatePlacements In China

On May 8,2006,as a channel for capital market refinancing,private placement was listed in the law.Since then,reform of non-tradable shares has entered a new hall in our country.Compared to public offering,because of private placement's low cost ? covenant lite and simple process,which leads it increasingly hotter as the favorite financing tool.Throughout the domestic and foreign research,the whole industry research is more than the single,so this article select the real estate industry to research,which can be more closely linked to the actual market,in order to supplement the vacancy in this field,which has practical significance.This paper chooses 59 real estate listed companies from 2006 to September 2016 as the sample,the announcement date as the day of the event,using event research method and multiple linear regression as the main method.We mainly research whether the private placement will bring to the Significant market effect near the announcement day and we use multiple linear regression method to study the impact of the main factors of the effect.First of all,this paper do a single sample T test for the abnormal rate of return and cumulative abnormal rate of return between a total of41 days,finding that abnormal rate of return appears a significant positive market effect three days before the event,and the day of the announcement to reach the maximum.The cumulative abnormal rate of return was significant positive two days before the announcement date and continued until the end of the event Window,indicating that the event could bring short-term announcement effect.Secondly,this paper analyzes that whether the major shareholders are the targets of private placement has significant effects on the announcement effect.The sample is divided into two groups,the results show that if there is a large shareholder's participation,the market will have a higher positive response.Finally,this paper make a multiple linear regression analysis on the factors influencing the effect of announcement.The results shows that the scale of financing and the participation of large shareholders are proportional to the effect of announcement.The total assets of the company are inversely proportional to it.This paper elaborates on the growth path of private placement,the system stipulation,the advantages and disadvantages of the financing mode,adding the empirical research,which will help the investors to understand the announcementeffect of the private placement.This paper also puts forward some suggestions: to increase the transparency of information disclosure,eliminating the interests of transport,strengthening supervision,and effectively ensuring the use of financing direction,improving the quality of financing,moving closer to non-traditional industries,and increasing the diversity of the issuing objects.