Research On The Relationship Between Private Placement,Overall Listing And Business Performance Of Firm

In May 2006,since the implementation of the Measures for the Administration of Securities Issuance of Listed Companies,the issuance of private placement has become the main way for the listed companies to refinance after the allotment and public issuance.According to Wind information statistics,during January 1,2007 to December 31,2016 for ten years,there were 3,856 equity re-financing cases in China's A-share market,and the total amount raised was about 67,838 billion yuan.Among them,there were 3,278 cases of private placement,accounting for 85.01 percent of the total,and about 59,290 billion yuan raised,accounting for 87.40 percent.It can be seen that private placement is far more than other equity financing methods in terms of both the number of issuance and the issuance scale.While being favored by listed companies,it has also become a hot spot for investors.In recent years,private placement has emerged a new trend,which gradually from the equity refinancing mode into a new way of mergers and acquisitions,more and more listed companies achieve the overall listing of the company through the private placement.Based on the above background,according to the previous literature research and practice present situation,this paper will be distributed in accordance with the purpose of distribution into the overall listing of private placement and non-overall listing of private placement.This paper analyze the performance of different types of private placement of listed companies,used equity financing theory and the relevant theory of overall listing,combined with the practice of the private placement and the overall listing.This paper select the listed companies,which has implemented the private placement during 2009 to 2014,as the research samples.Firstly,Factor analysis was used to calculate the performance score of the sample company and then determine the explanatory variables.Secondly,on the basis of controlling multiple corporate characteristic variables and private placement feature variables,performing multiple regression analysis,testing the impact of the overall listing of private placement on the company's operating performance through empirical method.Based on the empirical results,the following main conclusions are drawn:The performance of companies,which has implemented the private placement,including the overall listing and non-overall listing,has been a certain decline.Compared with the non-overall listing companies,the impact of the overall listing of private placement on the company's operating performance is negative.As a more effective notice of the type of private placement,the overall listing of private placement not only did not promote operating performance,but also had a negative impact.The result had to stir up thought.This paper explores the reasons that can lead to the negative impact of the overall issuance of private placement on the listed company's operating performance and make further policy recommendations.