Stockholders' Behavior Of Interests Support In The Process Of Additional Equity Issuance Of Listed Companies

After the reform of the shareholder structure in 2006,the models of equity issuance become more and more abundant in China Capital Market.Listed companies have more choices of refinancing.With the richer cases,equity issuance of listed companies has been concerned by a growing number of researchers.Current literatures mainly focus on the private placement.Some researchers study public issuance and share allotment financing.Equity issuance is a method of realization of resource allocation optimization and enterprise value maximization.Many researchers indicate that equity issuance becomes a method of tunneling.However,China Capital Market still has Interests Support.So this case study has important theoretical significance and practical significance.The case study bases on two equity issuances of Chuantou Energy.And this paper analyze the choice of issue price?the appreciation rate of seect price?finance and market performance of two equity issuances.Firstly,this paper describes the research background and significance.Then this paper reviews current literatures of agent and economic consequences of private placement and public issuance.Theoretical basis comes after.Secondly,this paper summarizes the development of system of equity issuance.Research on evolution of system is important.Thirdly,this paper detailedly researchs the case of private placement and public issuance of Chuantou Energy and dissects the finance and market performance of two equity issuances.Lastly,this paper draws a conclusion and makes some suggestion.Throung the case study of Chuantou Energy,this paper finds that controlling shareholder of Chuantou Energy injects high quality assets into listed company in the way of private placement in 2009.The injection of high quality realizes the resource allocation optimization.In 2012,Chuantou Energy refinances for the assets.This behavior benefits the development of the aeests.So controlling shareholder of Chuantou Energy effectively used the character of private placement and public issuance.It injects the high quality assets into the listed company and refinance for the assets throung the capital market.By means of this two equity issuances,the profitability of Chuantou Energy is guaranteed.And the interests of minority stockholders is protected.