Research On The Influencing Factors Of Choice Of Private Placement

Private placement has become the main way of equity financing of China's listed companies,which not only broadens the refinancing of Listed Companies in China and channels,and improve the development of Chinses capital market is-very important.The completion of the split share structure reform has created favorable conditions for the promotion of private placement.What are the reasons for the listed companies to choose private placement?This is a question worth exploring.Based on the theory of private placement and empirical research,this paper uses Logistic model to analyze the motives of private placement and public offering.At the same time,this paper uses the method of empirical research and case analysis combined:first,through empirical research,draw the conclusion,through the analysis of knowledge and understanding of private placement and public offering of choice for more in-depth specific case.At present,the study and selection of basic public offering placement for empirical research,case analysis and comparison,through specific case can clearly depict how to choose private placement,more intuitive and easy to understand.The study found that the ownership control,information asymmetry and risk factors affect the choice of the listed companies in different ways.First,the more concentrated the controlling rights of listed companies,the more inclined to private placement.Secondly,the risk factors also have a significant impact on the choice of private placement of listed companies,but the direction of each index is different.Among them,the use of funds for the investment of new projects listed companies tend to conduct private placement.Finally,the information asymmetry is lack of explanatory power to the private placement.