The Study On The Influence Of The Private Placement On The Operating Performance For GEM

Rights issue,public private placement,and private placement have been the three basic tools of equity refinancing of listed companies in China.With the promulgation of the regulation on the issuance of securities of listed companies in May 2006,as the important part of equity refinancing,the private placement was re-launched and became a popular method in Chinese capital market.As is known to all,Chinese A-share market is mainly composed of three parts: Main board,Small and Medium enterprise market(SME)and the Growth enterprise market(GEM).While,the GEM has never been open to the private placement until 2012.In 2012,there were only five cases of private placement on the GEM.Then,the China Securities Regulatory Commission promulgated the specialized laws and regulation for the GEM equity refinancing,the private placement has become popular with the evidence that there were 88,213 and 212 private placement cases from 2014 to 2016.Many domestic scholars have studied on the private placement since 2006 and put forward a series of study results.While,obvious differences existed between the main board and GEM,such as the market response,the purpose of private placement and so on.So,it is questionable whether the existing study results are suitable for the GEM private placement.The dissertation will focus on the operation performance change after the GEM private placement and also the major influence factors.The dissertation has mainly selected the listed company which made private placement from 2012 to 2015 on the GEM and used the method of multiple regression analysis to study the relationship between the operating performance and the private placement on the GEM.In the multiple regression analysis,the dependent variable is the change of the annual ROE before and after the private placement and the independent variable are different types of investors and purposes of the private placement on the GEM.Besides,the dissertation also selected another six control variables,such as the total assets,the ratio of liabilities to assets,growth,discount and so on.Finally,the study shows that the operating performance of listed companies onthe GEM declined.And,the operating performance with the controlling shareholders or related shareholders participated in the private placement are better than that with no controlling shareholder or related shareholders participated on the GEM and the operating performance with the purpose of purchasing assets are better than that with the purpose of construction project on the GEM.