The Research On Financial Performance Of SAIC Group’s Equity Refinancing

Funding is an important source of maintaining a company’s normal operations,and financing issues cannot be ignored for a company’s development.For listed companies,in addition to the initial public offering,equity refinancing is also an important channel for the company’s follow-up financing.With the development and improvement of China’s capital market,the financing options of listed companies are slowly changing.From the 1980s to the present,the development of Chinese securities market has experienced a situation in which the rights issue is dominated and the issuance is prevalent.However,the data shows that most listed companies’ equity refinancing performance does not rise and fall.Therefore,under the unique financing system and securities supervision environment in China,it is particularly important to study how the equity refinancing affects the company’s operating performance and how it can improve the refinancing behavior of China’s securities market.The paper uses the literature research method and the empirical research phase method.Firstly,it explains the status of equity refinancing of listed companies in China,and finds that the performance of SAIC Group’s equity refinancing declines,and theoretically explains the factors affecting the performance of SAIC’s equity refinancing.Then combined with SAIC’s Financial Information Group’s specific analysis of how equity refinancing affects corporate performance.This paper selects the financial data of SAIC Group with a large number of equity refinancing as a research sample,and analyzes the short-term market performance and long-term financial performance after the equity refinancing.In terms of market performance,the event research method was used to analyze the short-term market performance of SAIC Group’s three-year equity refinancing behavior in 2007,2012 and 2017,and it was concluded that equity refinancing did not have a positive effect on corporate market performance.In terms of financial performance,this paper chooses the return on net assets,total net profit margin,return on assets,and operating profit margin of corporate profitability as financial indicators.This paper analyzes the changes of the five-year service indicators before and after the refinancing of SAIC Group’s equity year,and finds that the financial performance of the company has experienced different degrees of decline after the equity refinancing.By combining the existing researches on the factors affecting the performance of equity refinancing on corporate performance,this paper analyzes the reasons why SAIC Group’s equity reintegration has not brought positive results to corporate performance.Finally,according to the research process and conclusions,combined with the big environment of China’s securities market and the characteristics of listed companies,the paper puts forward suggestions for improving the performance of SAIC Group’s equity refinancing enterprise,in order to standardize and improve the refinancing behavior of listed companies in China,and promote China’s refinancing behavior.The development of the financing market.