Research On The Motivation And Financial Performance Of Shunluo Electronics

After the completion of the equity split reform,private placement has become the main method of equity refinancing of listed companies in my country.The current research mainly focuses on the situation where the business performance will deteriorate after the private placement,but there are few studies on improving the company's performance after the private placement.The company's implementation of private placement is aimed at promoting its sustainable development.When investor sentiment is high,it is targeted for institutional investors to issue additional shares,which can optimize the company's equity structure and obtain high financing at a lower financing cost.At the same time,the funds raised will be used for projects in line with the company's development strategy to improve the company's financial performance.Therefore,it is necessary to analyze the directional increase motivation and its potential impact on the company's financial performance and linkage relationship from the perspective of project development,institutional investors and investor sentiment.This article takes Shunluo Electronics as an example,using market timing theory,principal-agent theory and information asymmetry theory,from the perspective of project development,national policy,investor sentiment based on text mining,and the advantages of directional issuance.The in-depth analysis of the motives for the two additional issuances of Electronics in 2014 and 2017.Secondly,this paper studies the market performance and financial performance of Shunluo Electronics after the private placement.The event research method is used to analyze the market performance of the two private placements in 2014 and 2017.Market performance has improved significantly.At the same time,from the perspective of project development effects,equity structure,financial indicators,factor analysis and economic value added,a comprehensive and systematic analysis of the financial performance of Shunluo Electronics after the directional issuance is issued,indicating that directional issuance can improve the product structure,expand the product scale,and optimize the company Ownership structure,enhance the company's financial capabilities,economic value added and overall competitiveness.The research in this article has enriched the literature in the fields related to directional increase motivation and financial performance;it can provide a reference for other listed companies to choose a good opportunity when placing additional shares;it can provide a reference for the regulatory department to strengthen the supervision of additional issuance.