The Effect Of Private Placement For Different Purposes On Company Performance

Directed issuance refers to the behavior of a listed company to refinance equity by issuing shares to specific investors.Listed companies have obtained private financing by issuing private placements and issuing new shares as payment instruments to no more than ten investors.With the development of China's capital market,the scale of equity financing has increased year by year.As the most commonly used means of equity financing,non?public offerings are gradually favored by listed companies due to their convenient and quick features.However,at the same time,it also brought certain problems.The listed companies passed the uncontrolled and circumvention of tactical misappropriation,and the major shareholders injected through targeted additional injections to subsidize the subscription of shares.The misuse of private placement leads to the inability of capital to flow into the real economy,which in turn leads to a sustained decline in the quality of the listed companies in the market.As an important means of equity financing,the effect of private placement has become the focus of attention of all walks of life.In response to these problems,regulators have introduced some relevant policies and measures in the development of the capital market.As early as 2006,the Securities Regulatory Commission promulgated the "Measures for the Management of the Issuance of Securities by Listed Companies",and in the following year issued the "Implementation Rules for Non-public Offering of Listed Companies".After this,the financing behavior of listed companies was regulated through relevant rules formulation and window guidance.Ten years later,the China Securities Regulatory Commission revised the issuance rules in February 2017 to rectify the non-public issuance market.This article,after sorting out the domestic and foreign literature on targeted private placement on the basis of reviewing the domestic and foreign literature of targeted private placement,aims to elaborate the current situation of the private placement market in China.Using the relevant theory of non-public issuance to analyze the private placement.Based on literature analysis and status analysis,select representative indicators and use factor analysis to explore the trend of changes in the performance of targeted private placements for different uses in the previous year and the subsequent three years.Finally,according to the results of factor analysis analysis,combined with the actual situation of the current capital market in China,some suggestions for the development of the non-public offering market are provided.