Research On Discount Of Private Placement Based On Liquidity Perspective

Private placement is the most important equity refinancing tool in China's capital market.It is an important part of the capital market.The pricing of private placement is directly related to the strategic development of the company and the interests of investors.Due to the laws and regulations for the issuance of restrictions on private placement,in addition to private placement of some of the factors brought about by natural,resulting in private placement is generally discounted issue.But there is no clear way to calculate the discount rate of private placement.The influencing factors of liquidity are the most significant factors in the influencing factors of the rate of private placement,and the liquidity is the best quantitatively influencing index in the discount rate.Longstaff and Finnerty each propose a retrospective and Asian option model.For the quantification of liquidity.In this paper,Longstaff option model and Finnerty option model are used to measure the liquidity discount of private placement.The applicability of the two models in the Chinese market is verified by empirical method.Based on the Longstaff model and the basic theory of Finnerty model,the model family calculates the liquidity discount.In this paper,we use the option model to calculate the liquidity discount.The volatility of the yield is very influential for the model.In this paper,we introduce the GARCH model to forecast the volatility,not just the historical volatility,and the empirical test effect.There are many factors that affect the discount rate of private placement,but the impact of liquidity as the basis of the entire pricing process,will improve the accuracy of the discount rate measurement.