Long Term Market Effect Of Private Placement On Listed Companies

Equity refinancing more ways,but the most important way in the country is private placement,as early as 2006,the Commission issued by the relevant documents to be clear about it.Since then,private placement has undergone major changes in scale,increasing from 93.838 billion yuan in 2006 to 1,810.1463 billion yuan in 2016.Therefore,the important role of private placement in refinancing the company makes more and more scholars study it.Based on the listed companies,we study the abnormal return rate of long-term stock price after the private placement,so that we can have a better understanding of the private placement and guide the market investment and so on.This is of great importance both theoretically and practically Significance,foreign researchers through a large number of studies found that based on the application of private placement,listed companies in the long-term abnormal return on the performance of a negative value.Due to the difference between the stage where China's capital markets are located and mature markets abroad,under the background of the unique environmental system of our country,what is the long-term market performance after the private placement of new shares of China's listed companies? Is there any "long-term price weakness" ?This research will use the sample data of publicly-traded companies with rich experience in private placement to study the above issues.Papers on the research carried out a comprehensive exposition,is to illustrate its structure:The first chapter is the introduction part,which mainly explains the background of the research work,clarifies the scope of the research,expounds the author's research ideas,introduces the methods applied in the research process,Content,essay framework,clarified the innovation of research work.The second chapter is part of the literature review.Combining with the main contents of this research work,the author starts from the aspects of discounts andannouncement effects,and collects and classifies the existing research literature at home and abroad.The third chapter is the analysis of the status quo of domestic private placement and the domestic research in this aspect,from the perspectives of course,characteristics and operation mode.The fourth chapter is the part of theoretical derivation.In order to better understand the effect of private placement on the long-term share price of listed companies,the author analyzes it from the theoretical level,mainly introducing information asymmetry theory,agency cost theory and supervision theory.The fifth chapter is the empirical test part.The chapter analyzes the whole process of empirical test and analysis.From sample selection to model construction,it discusses in detail and assumptions are analyzed theoretically and tested.The sixth chapter is the conclusion part.The chapter mainly summarizes the analysis results of the previous article,and clarifies the policy suggestions according to the actual situation,and explains the shortcomings in the research process.First of all,this paper describes the status quo of China's private placement through the development of the laws and regulations of private placement,the relative advantages of private placement and its operating mode,which will lay a solid foundation for the follow-up research.In this research work,I used normative research,empirical analysis of the implementation of research,both theoretical analysis,but also practical analysis,both qualitative analysis,but also quantitative analysis.In the part of theoretical research,the author applies the normative research to collect and classify the existing relevant literature so as to carry out systematic analysis and theoretical research,and apply it to the domestic market to make research hypotheses and carry out research and analysis,Conclusion,with the help of statistical analysis,clarify the relationship between private placement and long-term share price.On this basis,we construct the empirical model,then select the samples and data from the WIND,CSMAR database,and use EXCEL,SPSS and STATA12.0 software for empirical test.The time range of sample data selected in this paper is from May 2006 to December 31,2013.The long-term performance of the stock price is studied.Therefore,three years after the private placement is taken as a research stage,and from the investor category and investment Heterogeneous beliefs perspective analysis.This paper finds that the long-term abnormal return of stock price after the private placement of listed companies in our country is significantly negative.In the process of research,the author also classifies the research objects,obtains the related parties represented by major shareholders,and the non-related parties represented by institutional investors.At the same time,the author of the two groups in the implementation of private placement after the long-term abnormal return rate to be studied,concluded that when related parties involved,the listed company private placement long-term stock price performance better.In addition,due to the existence of asymmetric information,when the more heterogeneous beliefs investors,the company's private placement after the long-term market performance worse.