The Influence Of Non-public Offering Of Listed Companies On Its Stock Price In Different Market Quotations

The public companies in our country have a great demand on refinance,seasoned new issue,rationed shares and convertible bonds are the main ways of refinance of these companies nowadays,because of the lower threshold and simple procedure of non-public offering,more and more companies take this method for their refinance.Listed companies refinance for many reasons,for example,the lack of working capital,counterpart funding for projects and so on,the refinance activities may have different influences in different market quotations.In recent years,contrary to its price in secondary market,the price of non-public offering usually has some discount,the discount may do some harm to the old shareholders and the harm may bring drop of stock price in consequence.Because of the huddle of our country's initial public offerings(IPO)during recent years,the scale of refinance has become several times of the scale of IPO.Listed companies make use of refinance to boost their financial data,the capital market has become a convenient way for the companies to obtain money,in which way make the gap of listed companies and ordinary ones more obvious.Due to these advantages of listed companies,companies in line maintain a stable tendency,the price of shell resource continue to rise.In order to regulate refinance conducts of listed companies,China's Securities Regulatory Commission(CSRC)released the new policy,in addition to the prior acceleration of IPO,the situation of finance may emerge some change.With the capital market more and more mature,regulations more and more strict,the pressure of non-public offering is emerging,over half of the companies that had submitted the non-public offering applications forwardly withdrew the process after a month since the new policy was released.In fact,the stop cases will become more and more frequent with the increase of listed companies and expanding of scales of non-public offering.The past and present researches of professors and researchers about non-public offering are mainly about those that successfully conduct the deal.These are because non-public offering appeared relatively late in our country and the stop cases were uncommon in the past.This article think that the present capital market is mature and with the expanding of scale of non-public offering,the stop cases are big enough to conduct targeted research,therefore,this article focus those stop cases.Through event study and econometrics methods,our research can find out the effects of stop of non-public offering on stock price.The result can not only make up for this deficiency but also provide some material for later research about stop cases of non-public offering.At first,I conducted event study,because our capital market experienced bull market,bear market and other complex situations,it was inappropriate to do the research regardless of different market quotations,I classified market quotations into bull market and bear market,through this way I can get the result that the different effects of stop of non-public offering in different market quotations.After the classification,I did the event study respectively,took the released day of stop of non-public offering as the event day,15 days before that day and 15days after that day together composed event window,through the research whether the abnormal return was zero during the event window period,I could assess the influence of the event.Consequently,to further understand the influence factors of abnormal return,I took market quotation,listing location,reason of the stop of non-public offering as explaining variables,abnormal return as explained variable.Finally,I got the following results:(1)The stop of non-public offering has a great announcement day effect.No matter in the bull market or in the bear market,in the day of announcement,the abnormal return of stock price is obviously negative.(2)The stop of non-public offering has little effect on stock price in bear market.The stock price fluctuates at a lower level during bear market,the announcement of non-public offering cannot stimulate the price,similarly,the stop of the issue has little effect on its fall,in the whole,the stop of non-public offering has little effect on stock price.(3)The stop of non-public offering has positive effect on stock price in bull market.During the bull market,information and news tend to be warmer,investors have higher risk preference,these all lead to the result that good news has positive effect,bad news has negative effect in the short run but positive effect in the long run,the stop of non-public offering brings investors attention,then stimulates the stock price.(4)Stocks in Growth Enterprise Market(GEM)and in Small and Medium Enterprise Board(SME)have higher rise potential than stocks in main board.Companies in GEM usually have higher growth rates,the expectation tend to stimulate stock prices and thus lead to higher P/E ratios.If investors sell their stocks,the prices fall at an obvious rate,these all bring higher volatility.(5)Stop decision made by companies tends to have negative effect on stock price.Internal people are always the members that know the real conditions of their companies,thus their decision may deliver some negative signal.(6)Stock volatility in bull market is higher.The money effect of bull market,trading activities of investors,herd effect,etc.all enlarge the volatilities of stock prices.