The Research On The Relationship Between Information Asymmetry And The Performance Of Listed Companies In Private Placement

Since the implementation of "Administrative Measures for the Issuance of Securities by Listed Companies " in 2006,the private placement financing activities have been developed rapidly as the preferred and most important way for refinancing of listed companies in China.In 2016,98.6% of total refinancing activities of listed companies were completed by private placement.In the boom of private placements,all kinds of appearances,such as price control,tunneling,also occurred,which have a direct impact on the listed companies to achieve the possibility of improving operating efficiency through the equity refinancing.As private placement started late and development time is short in our country,domestic researches on private placement of China’s capital market are still not perfect and comprehensive.Looking back at the domestic literature so far,we can find that the researches on private placement mainly focus on the motivations for the private placements of listed companies,the discounted level in the private placement,the announcement effect and the wealth redistribution effect after the private placement.In addition,the researches on the performance changes of listed companies after the private placement is few,which just simply did some event analysis to examine the significant degree of deviation between the operating results before and after the private placement.It can be said that it is almost tasting and hardly help to understand the reasons behind the changes in performance.Based on the classical investment efficiency theory,this paper attempts to analyze the impact of informational asymmetry on the final operational performance change under the perspective of "over-investment".First,through the establishment of the theoretical model,this paper proves that the greater the degree of asymmetry of the information is,the stronger the motivation of the over-investment of the controlling shareholders have,and when the informational asymmetry is large enough,even if the expected income of the investment project is less than the cost,the controlling shareholder will still pass the porject and invest in it,which can reduce the company’s investment efficiency.In the empirical evidence analysis part,based on the previous research results,this paper chooses some variables to measure the degree of asymmetry of information,overinvestment and the performance of listed companies.The results show that there is a close relationship between informational asymmetry and over-investment dummy variable,while over-investment is significantly negative correlation to the operational performance,indicating that through private placements informational asymmetry can achieve over-investment,and thus affect the operational performance.The path is smooth.And the result of directly examining the relationship between information asymmetry and operational performance also affirmed the conjecture,which says the enterprises which have higher degree of informational asymmetry are prone to have deterioration in operational performance after private placement.