Research On Decision-making And Effectiveness Of Company Z's Private Placements

In recent years,under the promotion of state-owned enterprise reforms and supply-side reforms,enterprises have begun to transform their industries and adjust their industrial structure.Many of them have used targeted means to increase financing for transformation.From the statistical data for the past ten years,the directional issuance method accounts for an increasing proportion of the capital raised by listed companies and began to increase in 2014.In 2014 and 2015,it accounted for 88% and 96% of the equity financing scale.The main reason is that private placement has the advantages of low issuance cost,low threshold,easy to be audited,and high efficiency.However,at the same time,there are opportunities to infringe the interests of small and medium shareholders,such as timing selection and interest transfer.This paper combines case companies and analyzes the reasons why the company chooses to increase the amount of refinancing as a means of refinancing;whether the effect of the increase in performance after the implementation of the increase will have a synergistic effect;whether to optimize the allocation of resources;and consider the timing,control,and interest transfer issues.The problems and causes of private placements,such as the company's deliberate choice of timing of issuance,or intentional choice of timing of reduction,transfer of control rights after the completion of targeted issuance,and whether there is a problem of transfer of interest in targeted increments.Based on the review of related literature,this article first introduces the private placement and related theoretical basis,then introduces the specific situation of targeted private placement and the content of the plan;secondly,it analyzes the effect after the implementation of private placement;Finally,it analyzes the existence of private placement from four aspects.Questions and suggestions for improvement.Through the research on directional reissuance and refinancing of company Z's suspension in 2014,the main conclusions are as follows:(1)Change in shareholding structure after the issuance of additional shares,and found that the control power is not stable,and it is recommended to pay more attention and consideration may be given to extend the commitment period.The status of control;(2)After the increase,the company will achieve strategic transformation,increase its core competitiveness and debt repayment ability,but some financial indicators will be mixed.Therefore,it is recommended that the company consider expanding customer scope,increase orders,and increase revenue;(3)It was found that there was a time when the stock price was selected to be issued at a lower position,and the issuance timing was conducive to the issuance of the object.and the stocks were undervalued at the time when the share price was high.There was a tendency to gain interest,and the supervisory authorities were advised to expand the scope of supervision of reductions;(4)The company's existence of unreasonable pricing,the occurrence of related party transactions increasing,there is a suspicion of interest transfer,it is recommended that the regulatory authorities to strengthen supervision and law enforcement efforts to prevent the interests of the transfer behavior.