An Empirical Study On The Impact Of Private Placement On The Operating Performance Of China's A-share Listed Companies

In 2006,with the Promulgation of the listed securities of the Company issued Administrative Measures,private placement of new shares in China began to develop.Compared with other equity refinancing tool,private placement has many advantages such as lower issue cost,flexible issue ways,less approval procedure,so it has boomed dramatically.As of December 31 th,2016,the number of private placement in Shanghai stock exchange and Shenzhen stock exchange is up to 3255,the amount of refinancing is more than 596.69 billion,private placement gradually replaced allotment and public offering,and became the most important equity refinancing tool in the market.In consideration of the important position of private placement in the capital market,whether it can affect the performance of listed companies will have an important significance.However,none of consistent results is drawn in academia.In this paper,on the basis of existing theory,328 listed companies which implemented private placement in 2014 are selected as samples,and the author chooses 11 indicators from profitability,solvency,operational capability and development capability to consist of research systems,uses the way of factor analysis to calculate the overall performance of the sample's score,and compares the scores before and after the private placement to analyze the impact of private influence on the company.The research concludes the private placement of China's A-share listed company's operating performance has not been significantly improved.The research suggests that the reasons why the company's operating performance has not been improved after the private placement mainly lie in: investors have injected low-quality assets into the listed companies in the process of private placement;the efficiency of using capital is low;many people are blindly investing.On the basis of this conclusion,there are some relevant suggestions and policies: Ensuring institutional investors inject good assets;strengthening the approval of private placement;improving the information disclosure system;improving the quality of investors.