Research Of The Impact On SME And GEM Enterprises Of Private Placement Under The Control Of Large Shareholders

The purpose of setting the Small&Medium Enterprise Board(SME board)and the GEM is to provide a financing platform for SME of China and to play a role of capital market to Support the development of the entity economy.In 2015,the capital market of our country ushered in a mammoth bull market,but also had two crash.In order to prevent the spread of the systemic risk,On July 4th,2015,the CSRC has announced the moratorium of IPO.It reduced the stress of falling share prices,but also cut off the important channel of blood transfusion from capital markets to the real economy.During the suspending of IPO,the CSRC passed 228 plans of private equity placement.281.11 billion yuan was expected to be raised.Private equity placement is becoming an important way of equity refinancing.A feature of listed enterprises of SME board and GEM is ownership concentration.Large shareholders have a strong control ability of these enterprises.Their participation of private equity placement is the endorsement of the prospect of the enterprises or projects.What effects does the participation of large shareholders of the private equity placement produce?Will it impact stock yield or improve enterprises growth ability?In order to answer these questions,this thesis explains the short-term effects produced by the private equity placement according to the market reaction and explains the long-term effects according to the change of growth ability.In the aspect of theoretical analysis,this thesis analyzes the short-term impact of stock yield from the view of signaling theory and insider trading,explains the long-term impact of the growth ability of enterprises from the view of liquidity support and investment efficiency.On the base of theoretical analysis,this thesis make an empirical analysis applying the method of event study and factor analysis.It concludes that private equity placement has become a tool of the large shareholders to encircle money in most cases.It is only stir-fried conception in the short term and will not enhance the growth ability of enterprises.This thesis puts forward four suggestions that perfecting the law system relating to the private equity placement,encouraging the institutional investors to participate in private equity placement,improving the quality of the injected assets,building the appropriate incentive mechanism,and introducing media supervision.