A Study On The Impact Of Private Placement On The Performance Of Listed Manufacturing Companies In China

With the development of economy and the expansion of capital market in China,capital has become the basis of the development of enterprises,and finance has acted as the necessary guarantee for the business development of listed companies.After Administrative Measures was issued and come into effect,private placement has become a dark horse in the stock market of China and has turned into one of the main measures of listed companies in a short time because of the advantage of few limited conditions,low issuance barriers,flexible pricing system,convenient approval process and so on.Although private placement has a good development trend in the Chinese stock market,there are still imperfect aspects in the relevant laws and regulations,examination systems and supervision for the short history of private placement in China.Due to the special national conditions of China,the researches of western world are not suitable for our country,and the domestic studies of private placement mainly focus on Pricing,motivations,and announcement effects,less attention on the impact of the performance of listed companies has been paid.Therefore,the study of the impact of private placement on the performance of listed companies is of great significant.This paper tries to make a research on the impact of private placement on the performance of listed companies from two aspects of theory and practice.In the theoretical level,it analyzes the features of private placement first,and then describes the classification and current situation of private placement of listed companies in our country.Afterwards,by combining the theories of Supervision effect,agency cost,information asymmetry,it elaborates the effect of different private placement on the performance of manufacturing-listed companies from the aspects of different Issue object,different Subscription method and whether the foreign institutional investors are contained or not.In the empirical study,this paper chose the 2011-2012 A-share listed company from 2013 to2015 as the sample,which contains 349 companies proceeded private placement in 2011-2012.The four abilities of Corporate earnings,actual operations,debt repayment and future growth should be considered to select Return on net assets,asset liability ratio,book to market ratio,which are adopted to carry out empirical study.And a score model is built by applying the Multivariate regression analysis method,the impact of private placement on the performance of manufacturing-listed companies is analyzed based on the empirical results.After that,the credibility of the conclusion is strengthened by employing the pair-simple test on the ranking results.In this article,Firstly,through the empirical study,the author found that China's private placement has positive effects on business performance of listed companies during the studyperiod,but the effects will be more and more powerless as time goes on.Secondly,consider objects who have institutional investors to participate in the purchase of the influence of the operating performance of listed companies is better than that without their participation.Thirdly,the purchase form using monetary fund the purchase of the business performance of listed companies is better than those who adopt the monetary capital.