Research On Purpose Of Private Placement And Capital Allocation Efficiency Of Listed Companies

In recent years,private placement has become an important method of equity refinancing.The listed companies introduce strategic investors,adjust the company’s ownership structure,improve corporate governance and enhance the efficiency of capital allocation by private placement;the listed companies can finance rapidly for high-quality projects,improve profitability and enhance the efficiency of capital allocation by private placement;but there are also a few large shareholders or related parties to transport benefits by private placement.Thus it can be seen,the purpose of private placement of listed companies is different,and the impact on the company’s capital allocation efficiency is different,so the relationship between private placement and capital allocation efficiency in-depth study has practical significance.In this thesis,through the literature review of the private placement and capital allocation efficiency,it is founded that the purposes of private placement of listed companies are different,and the efficiency of capital allocation is different.Therefore,this thesis starts with the definition of private placement,the purpose of private placement and the efficiency of capital allocation.The possible relationship between the purpose of private placement and the efficiency of capital allocation is analyzed in relevant theories,and puts forward four hypotheses that purpose of asset restructuring,purpose of project financing,purpose of repayment and purpose of supplementary working capital are positively related to the efficiency of capital allocation;three hypotheses of the efficiency of capital allocation in purpose of project financing is lower than purpose of asset restructuring,the efficiency of capital allocation in purpose of repayment and purpose of supplementary working capital are lower than the asset restructuring;three hypotheses of the efficiency of capital allocation in purpose of repayment is no significant difference in purpose of supplementary working capital,the efficiency of capital allocation in purpose of repayment and purpose of supplementary working capital are higher than purpose of project financing.To verify the hypothesis,the capital allocation efficiency is considered as explained variables,and the purpose of private placement is used as explanatory variable to get multiple regression analysis.It is concluded that the four purposes are positively related to the capital allocation efficiency.Finally,the variance analysis of the capital allocation efficiency under different purposes of private placement is conducted,and the capital allocation efficiency under purpose of capital restructuring is higher than the other three purposes.However,the capital allocation efficiency is no significant difference between purpose of repayment and purpose of supplementary working capital.Through this research,the relationship between the private placement and the capital allocation efficiency is further revealed,and explore the differences of capital allocation efficiency in different private placement,and enrich the impact of private placement on the company’s capital allocation efficiency.