Research On Benefit Transfer In Z Private Placement Process

In recent years,private placement has become the most popular way of refinancing in Chinese capital market.Private placement has the advantages of relatively low requirements,the simple releasing process,self-underwriting,and raising the amount of funds is also relatively free.In addition,private placement can raise sufficient funds,realize the enterprise overall listing,reduce affiliated transactions and competition,also related party guarantee and other irregularities.Private placement can introduce strategic investors to share resources,at the same time,introduce advanced management experience and technology etc.But a coin has two sides,which brings convenience to the company also has a series of problems.Because the program and the process of private placement involves the redistribution of the interests of the company between the issuance of additional shareholders and the original shareholders who did not get additional.At the same time,the ownership structure of Listed Companies in our country is relatively concentrated,so that the majority of shareholders can achieve the transference of interest by paying a lower price and injecting non-performing assets,etc.In this article some related researches about the domestic and foreign private placement and the transference of benefits were reviewed.The theoretical basis is asymmetric information,principal-agent theory and the transference of interests in the process of private placement.Combined with the case of private placement of Z Company Limited,the analysis and study is about the major shareholder of the use of private placement for tunneling behavior.Through the study we found that the transference of interests of big shareholder in the process of private placement mainly is that the major shareholder select the appropriate time of private placement to control the private placement price in the low,make major shareholders to obtain a high discount rate,exist surplus management in the process of private placement and pay high cash dividend after private placement.Major shareholders transfer the benefits in private placement in this ways.Then,this paper analyzes the impact of the private placement on the company from the financial view,and found that the company did not improve the financial status of the company through the private placement.It is concluded that the major shareholder of big shareholder in the process of private placement transfer the benefits through a variety of means.At the end of the article,the author puts forward some suggestions and measures.First of all,it is related to improve the external mechanism,such as improving the pricing mechanism,strengthening the company's subscription object supervision,strengthening information disclosure.Secondly,it is to strengthen the company's internal management.For example,to optimize the ownership structure,the introduction of strategic investors,to strengthen internal control and improve the system of independent directors and major shareholders to increase the balance.