Research Of Factors Affecting Private Placement Of Listed Company

Since the formal implementation of "initial public offering of stock and listing management approach" in 2006,private placement has gradually become the main way of listed companies refinancing.It is precisely because of the management approach of listed private placement without any financial performance requirements;low-threshold leads demands of company refinancing to rise.During the year of 2015,listed companies implemented a total of 858 private placements,issued 187.747 billion shares,the actual fund-raising add up to 137.23 billion RMB.Compared to the scale of 167.639 billion in 2015 A-share initial public offering,private placement has become an important way of company financing.Nearly ten years of statistical data found that there is a certain price difference between private placement price and market price of listed company in issuance process.The discount phenomenon has aroused the concern of many domestic and foreign scholars.At the same time,academics have also put forward a lot of theories,such as Information asymmetry theory,Supervisory service compensation theory and Shareholder's benefit transmission theory.Therefore,based on previous scholars'research theories and methods,this paper analyzes the factors affecting the listed companies' private placement discounts through a new perspective.From 2014 to the end of second quarter of 2016,the A-share listed non-financial companies to implement the private placement as a research sample.The paper mainly studies the relationship between investors' sentiment and private placement price discount,the relationship between firm growth and private placement price discount,and the influence of market conditions on private placement price discount.In this paper,through the description of the behavior of large shareholders,investor sentiment,company growth,market conditions,selecting the appropriate measurement indicators,establishing the regression models,making empirical analysis,finally drawing the conclusions.The conclusions of the empirical study in this paper:(1)The proportion of large shareholders to participate in the subscription is positively related to the private placement price discount,the greater the proportion of the large shareholders to participate in the subscription,the greater the discount of private placement of listed companies.(2)The greater motivation of large shareholders 'participation in the subscription(that is,the ratio of the gap between the major shareholders'participation in the subscription and the proportion of the largest shareholders before the issuance)is positively related to the private placement price discount.(3)Investor sentiment is positively related to the private placement discount of listed companies,and the A-share market turnover rate as the proxy variable has a significant positive effect on the private placement discount.The higher the investor sentiment,the greater the price discount of private placement.(4)Proxy variables of investor sentiment:IPO listed companies' first-day yield;there is no significant relationship with the IPO first-day yield of listed companies.(5)There is uncertainty in the relationship between the growth of listed companies and the discount of private placement.(6)In the case of a bull market,there are obvious motivations for large shareholders to achieve the goal of profit transfer by influencing the discount ratio of private placement.In the case of the bear market,due to the market conditions and the impact of investor sentiment depressed,the motivation of large shareholders to participate in the subscription will be subject to certain constraints.According to the above conclusions,this paper puts forward the corresponding policy recommendations:(1)Supervision and management of large shareholders'behavior;(2)Detailed requirements for the growth of listed companies;(3)Different regulatory policies implemented in different market conditions;4)Establish a sound information disclosure mechanism and investor risk education.The purpose of this paper is to provide some suggestions for regulating the private placement mechanism and protecting the interests of minority shareholders and investors,so as to make the private placement play a stronger role for the listed companies to provide better financing;for investors,provide more secure investment underlings.