Study On The Case Of Muyuan Company's Preferred Stock Financing

Preferred stock financing originated from western developed countries.With economic development and technological progress,preferred stock has been widely used in western capital markets.In recent years,China's economy has expanded substantially and the process of financial reform has accelerated.Traditional financing methods have been unable to meet the actual financing needs of enterprises.In 2014,preferred shares as a new financing channel formally entered the capital market of China.The introduction of preferred stock has broadened the financing channels for enterprises.It is dual characteristics of equity and debt can effectively help enterprises raise funds,broaden financing channels and reduce the ratio of assets to liabilities on the basis of protecting the control rights of original shareholders.As the first listed company to issue preferred shares in animal husbandry,Muyuan shares conform to the pilot wave of preferred shares,open up a new financing path for enterprises,achieve the financing objectives of enterprises,and provide practical experience and reference value for other enterprises to carry out preferred shares financing.This paper summarizes and combs the research results of domestic and foreign scholars on preferred stock,collects and analyses relevant data and announcements,and studies the financing of preferred stock of Muyuan Stock by using the methods of literature research,case study and event study.This paper takes Muyuan Stock as a case study object.After a brief description of the meaning,characteristics,types and theoretical basis of preferred stock,combing the background and process of preferred stock financing with the industry background and enterprise status of Muyuan Stock,it makes a comprehensive analysis of the motivation,characteristics,effects and risk points of issuing preferred stock of Muyuan Stock.Finally,the successful issuance of Muyuan Stock is concluded.The case of preferred shares is analyzed and summarized,which provides theoretical support for other listed companies that choose to issue preferred shares in the future,and puts forward relevant countermeasures and suggestions.In this paper,we find that in the environment of difficult debt financing of animal husbandry enterprises,the stock of Muyuan is mainly due to the consideration of expanding the scale of pig farming.In order to supplement liquidity,stabilize company control rights and save financing costs,we choose to issue preferred shares for financing.By sorting out relevant announcements and data,and by means of comparative analysis and event analysis,this paper makes a concrete analysis of the use of enterprise funds,financing costs,financial risks,capital structure,ownership structure and market reaction changes of preferred stock financing in Muyuan Stock Issuance.The analysis shows that preferred stock financing can save the financing cost,optimize the capital structure,enhance the company's ability to resist risks and stabilize the company's ownership structure.The issuance of preferred stock financing by Muyuan shares can ensure the rational use of project funds and bring positive market reaction to enterprises in the short term.This shows that the issuance of preferred shares at this stage has a positive impact on Muyuan shares.Through the case of successful issuance of preferred shares of Muyuan Stock,this paper puts forward some suggestions on the decision-making angle for the same industry enterprises and other listed companies with preferred shares financing intention,hoping to provide more experience for enterprises in the trial stage of preferred shares and promote the diversification of financing methods in China.