Research On The Long-term Effects Of The Listed Company Mergers And Acquisitions Unlisted Companies By Private Placement

Since the CSRC promulgated the Administrative Measures For the Issuance Of Securities By Listed Companies(May,2006)and The Implementing Rules For The Non-public Offering Of Shares For The Listed Companies(September,2007),the quantity of assets and the sum of The listed company mergers and acquisitions unlisted companies by private shows a growth trend.Especially there're 827 Chinese listed companies raised money by private placement in 2015,the total amount is 1615.1 billion Yuan.So private placement has become one of the important funding models of Chinese listed companies,it's similar to private placement in western capital market and always the hot research on the financing in foreign.By comparing with western capital market,the private placement in Chinese capital market has both with the characteristics of ordinary private equity financing and its own distinctive characteristics.Especially the pattern of payment,it's different with western capital market,not all the subscribers pay in cash in China,there're plenty of subscribers pay by assets,so it always cause that the listed company mergers and acquisitions unlisted companies when the listed company implement private placement.However there's few research on the long-term effects of the listed company mergers and acquisitions unlisted companies by private placement.And few related research always focus on the majority shareholders' injected assets.Therefore,it's meaningful to research the long-term effects of the listed company mergers and acquisitions unlisted companies by private placement base on the special background of Chinese capital market.Based on the existing research,The paper research the long-term market effects and the long-term operating market effects of the listed company mergers and acquisitions unlisted companies by private placement from 2008 to 2013.The result shows that:(1)The long-term operating effect.The participation and the increasing subscription proportion of relate party?the related asset has a positive impact on the long-term market performance of the listed companies.But the private placement size has no significant influence on the long-term market performance of the listed companies.This is because the company which issues large private placement scale is always Mergers and acquisitions,and often signs the Valuation Adjustment Mechanism to the financial performance over the next 2 years.(2)The long-term market effect.The participation and the increasing subscription proportion of relate party has a positive impact on the long-term market performance of the listed companies.Besides,if the underlying asset is related,the long-term performance of listed companies is better.The private placement size also has a positive impact on the long-term market performance of the listed companies.Besides,the individual characteristics of listed companies will have an impact on the long-term market effects.For example,the ROE is higher,the long-term market effects is better.This paper explores the long-term effects of the listed company mergers and acquisitions unlisted companies by private placement on the long-term market effect and the long-term operating effect.On one hand,it enriches the research in related fields at the theoretical level.On the other hand,it provides a reference for the improvements of the capital markets,regulatory policy and corporate governance.