Investment Efficiency Analysis Of Private Placement Capital In Listed Companies

Since the split share structure reform in 2005,the private placement has been increasingly popular by listed companies.If the capital can be reasonable invested,the company can quickly seize the favorable opportunity of industrial investment and improve the company's operating performance.However,due to imperfect laws and regulations related to China's private placement,there have been problems such as excessive investment and insufficient investment.The overall investment efficiency of capital is not high.At present,the public believes that this kind of non-efficiency investment exists more frequently in the issue of large-share shareholders or related parties.On the contrary,if the issue target is an institutional investor,the institutional investor can supervise the rational allocation of capital,and the overall investment efficiency is high.However,the capital operation behind it is increasingly diversified,and the scope of coverage is also radiated to external investors.Therefore,it has certain research value for the research on the investment efficiency of listed companies' private placement of raised capital.This article takes Kingswood as a case study object.By consulting the public disclosure documents,it is known that Kingswood have implemented two private placements in 2013-2015 to invest in high-end copper projects and acquisitions.Xi'an Mengzhou 100% equity,trying to improve the company's comprehensive profitability,but the final effect is not good.Therefore,this paper firstly uses the DEA model to evaluate the relative efficiency of the industry investment of Kingswood,and then selects the industry average as the comparison object,and evaluates the efficiency of the investment itself from the aspects of the sufficiency,effectiveness and liquidity of the investment itself.The final result shows that the investment efficiency under the model of DEA is low in the industry;the sufficiency,effectiveness and liquidity of the investment itself is not high.The overall investment is non-efficient.The reasons for non-efficiency investment include the following three points: first,excessive financing leads to a large amount of capital idle;second,eagerness for expansion leads to strong investment arbitrage;third,listed companies collude with external investors,weakening investor supervision Strength.