An Empirical Study On The Long-term Wealth Effect Of Private Placement In A-Share Market

With the relevant policies have been revised and promulgated,Private placement behavior has a clear legal status and operational norms,investors gradually turn their attention to the private placement market,and China's A-share market several IPO suspension,but also to the private placement market The development of space.With the rapid development of private placement,more and more investors to participate.At present,There are two extreme current emergence of the phenomenon of private placement:one is too concerned about the underlying listed companies,ignoring the private placement of their own financing behavior on the impact of stock prices;the other is too concerned about the behavior of private placement The company's short-term impact of stock prices to meet the short-term speculation in the market.At present,China's stock market in the process from the approval-based IPO system to the registration-based IPO system,the relevant laws and regulations increasingly perfect.In addition,with the implementation of the registration system,there are more and more companies listed,investors are more and more opportunities to participate.Based on the perspective of private placement participants,this paper examines the factors influencing Long-term wealth effect from the investment period,and provides the investors with reference.At first,this paper reviews the development of private placement market,finishing the relevant laws and regulations and systems.And then refer to the previous study of private placement,in-depth understanding of Principal-agent,information asymmetry,wealth effect theory.Finally,we select the key factors that affect the private placement,select the 2012 to 2016 China's A-share listed companies equity private placement samples for empirical testing,and ultimately draw the following conclusions.First,Private placement gives investors a positive long-term wealth effect.Second,The higher the discount rate,the lower the long-term excess return rate.The greater the degree of corporate information asymmetry,the higher the discount rate,the smaller the long-term wealth effect.Third,The larger the actual fund-raising scale,the lower the long-term cumulative excess rate,indicating that the issue of discount rate and long-term wealth effect.It is generally up to several years to bring steady income,so the future rate of return and raise the size of the capital is not necessarily proportional to the proportion of funds relationship.Based on the above study found that,on how to be more effective in participating in private placement to provide a reference,I made the following two recommendations.First,Strengthen the external supervision,improve the relevant laws and regulations.In this paper,we find that the long-term wealth effect of the major shareholders is more negative,the discount rate and the long-term wealth effect are negatively correlated.These two points show that China's stock market reform,China's securities market,including private placement market still exists principal-agent issues and information asymmetry.This requires us to intensify the improvement of relevant laws and regulations,to strengthen the supervision of major shareholder behavior.Second,Strengthening the study of the use of funds for targeted issuance.The empirical results show that the larger the scale of financing of listed companies,the longer the cumulative excess rate of return is lower.Indicating that the funds raised by private placement have not been effectively used.On the one hand to strengthen theoretical research;the other hand,regulators also need to improve the supervision mechanism to prevent the abuse of listed companies to raise funds...