Research On The Short-term Market Effect Of Private Placement Based On Different Mode And Major Shareholders' Behavior

Since A-share market achieved full circulation after the non-tradable share reform in 2006,the private placement has been the main equity refinancing method of the listed companies in Chinese stock market.Mainly adopting the method of event study,this paper uses 867 listed companies which implemented the private placement from 2013 to 2015 as the sample to analyze the market effect during the public announcement period.The private placement has been proved empirically to bring the obvious significant abnormal return during the announcement period.Besides,the amount of excess earnings varies when different modes of private placement is adopted.Among the influencing factors of the market effects brought by the private placement,these factors have an obvious influence on the private placement market effect,like the feature index of the private placement,the company financial index,market environment and the investors' emotion.It also finds that Insider trading occurs in Chinese private placement market and shall have a reverse effect on the market announcement effect of the private placement.