Research On Influence Of Private Placement On G Company's Business Performance

Faced with the ever-changing market environment and the intensification of competition among enterprises,companies need to continuously upgrade technology and continue to expand the scale to reduce marginal costs in order to gain greater market share.In this operation,the company needs a lot of capital investment.In the case of insufficient self-owned funds,the company needs to carry out external financing.Listed companies in China's capital markets generally have equity financing preferences,of which the most popular is the private placement.With the explosion of private placement,the research on the effect of private placement of listed companies on their business performance has important practical significance.This paper first sorts out and summarizes the relevant literature,sorts out the domestic and foreign research results in the field of private placement,combs and analyzes the related concepts and theoretical basis of private placement.Then,choose G company as a case,use the combination of theoretical research and case study to analyze the operating performance of G company before and after the private placement.Company G has implemented three private placements since its listing in 2010 and announced a new private placement plan in 2017.In view of this situation,this paper thoroughly studied the effect of private placements implemented in 2014 and 2015 on the operating performance of company G.The strategy of implementing private placement along the company may be a cash flow problem.First,analyze the problems existing in the cash flow of the company.Then,we analyzed the changes in financial performance,market performance,and asset structure before and after the private placement of Company G.Through the analysis of this paper,we find that there is a shortage of cash flow for operating activities of company G.We analyze the performance and find that issuance of private placement increases the capital structure of the company,reduces financial risks,and enhances the company's ability to repay debts and growth during the current period.However,its operating capacity and profitability have been weakened.In the long run,solvency weakened and profitability has rebounded.Private placement plays a positive role in the performance of the capital market,and the private placement of large shareholders is more promising than ordinary targeted private placement.The lower the discount rate is,the more targeted investors are,and the market performance is better.At the end of the article,a proposal was made,pointing out the areas where G's private placement is worth learning.This article systematically analyzes the financial performance before and after the private placement of G company,and analyzes the performance of G company before and after private placement in the capital market and the effect of private placement on the corporate asset structure,providing investors with an in-depth understanding of the company's operating conditions and financial status.To provide a reference for better understanding of the company's future development,and provide advice for the company's next private placement and other companies that will conduct targeted offerings.