Research On The Impact Of Major Shareholder's Subscription On The Announcement Effect Of Private Placement

In 2006,after the promulgation of the regulations on the issuance of securities issued by listed companies,private placement has gradually developed into the main force of equity refinancing with the advantages of "low threshold and high flexibility",especially in recent years,more and more SME and GEM enterprises have been taking the method.And the big shareholders,as the important subscribing objects in the orientation,how the market looks at its participation in the subscription has been paid attention to.Under this background,this paper discusses the announcement effect of private placement and the factors that influence announcement effect.In this paper,256 companies in SME and GEM market are used to carry out the research samples.The sampling time is from 2012 to 2017.Use the event study method with two groups of samples depending on if large shareholders participated in the subscription or not,both were calculated the average excess return rate of AAR and cumulative average abnormal return rate of CAAR during the period of event.Firstly evaluate the short-term announcement effect of major shareholder subscription group,then compare it with another group of samples in the search of differences on the announcement effect.By using the results obtained by the event study method,this paper take the announcement effect of large shareholders subscription group(CAR)as the dependent variable,the proportion of shareholders to subscribe,subscription method and the degree of information asymmetry as independent variables,then reasonably added some control variables to construct the regression model on the announcement effect for the interpretation,exploring the impact of the proportion of large shareholders to subscribe,subscription method and the degree of information asymmetry on the announcement effect.Through the research on the private placements of SME and GEM enterprises,the main conclusions of this paper are: first,whether or not the large shareholders participate in the subscription,the private placement has a positive announcement effect.Second,the response of the market to the participation of the large shareholders is stronger than the non-participation of the large shareholders,however,the overall announcement effect of the large shareholders' participation in the subscription is weaker than the non-participation of the large shareholders because of adding up the effect of the shareholders' active pressure on the stock price before the announcement day.Third,the higher the proportion of subscriptions is,the stronger the positive announcement effect is.Fourth,the cash subscription has a stronger positive announcement effect than the asset subscription.Fifth,the higher the information asymmetry is,the stronger the announcement effect is.