Research Of Window-effect Of Private Placement Announcements Of A-share Listed Firms

Since Shanghai and Shenzhen Stock Exchange founded in the 1990 s,not only the financing scale of China's listed companies expanded continuously,but also the refinancing methods of them innovated constantly.In April 2006,China Securities Regulatory Commission issued “management of listed companies to issue securities”.As a result,private placement of China's listed firms increases rapidly and becomes China's largest equity refinancing tool for flexible pricing,low requirements of financial status and easy to make into practice.Private placement is very important to the development of the firm as a result of it's the first choice of equity refinancing of A-share listed companies.Therefore this article selects A-share listed firms which carry out private placement as study object and makes a research of window-effect of announcements which issue in different stages of the process of private placement to make suggestions for investors,listed companies and supervision departments.This article is divided into six parts.After the brief introduction in the first part,this article makes systematic analyses of development histories,legal features and market characteristics of private placement of A-share listed firms and summarizes the process of private placement to form the definition of announcements in this article.Next,this article introduces theoretical basis of window-effect of the announcements of private placement of A-share listed firms: supervision effect hypothesis,asymmetric information hypothesis,control power theory and investment opportunities hypothesis and makes several hypotheses to window-effect of the announcements of private placement of A-share listed firms combined with related research achievements.It is the focus of this article to make a research on the characteristics and influencing factors of window-effect of the announcements of private placement of A-share listed companies.This part selects Event Study and multiple regression analysis as basic framework and some A-share listed companies which successfully carry out private placement during June 2010 to June 2016 as study object to build research indexes called excess returns and accumulated excess returns to conduct the research.First of all,we makes descriptive statistics and mean tests to excess returns and accumulated excess returns which appear in window-periods of board of directors' planning announcement,CSRC's approval announcement and companies' implement announcement to confirm the existence and different features of window-effects of all announcements.Secondly,we sectionalize the sample according to purchasers,financing purposes and nature of enterprise and make a research of descriptive statistics and mean tests between different groups in order to preliminarily determine whether these factors have influences on the window-effects and analyze the different influences on window-effects of different announcements resulting from the same factors.Lastly,we select accumulated excess returns of window-effects' duration of all announcements as dependent variables and build three multiple regression models in order to make a analysis on influence factors of all announcements' window-effects and find the final conclusions.Finally,the article make suggestions for investors,listed companies and supervision departments according to the research conclusions.Investors should make basic plans for timing and expected returns according to the categories of the announcements and make appropriate adjustments referring to the information of private placement and corporate fundamentals to achieve optimal portfolios and rational investments.Listed companies should optimize private placement from these aspects: encourage institutional investors to purchase to form effective supervisions,disclose financing purposes in detail to promote investors to form reasonable expected value and determine reasonable financing scale and reasonable prediction trend of stock prices to confirm appropriate timing for private placement.Supervision departments should promote the development of the market from these aspects: improve the legal system and refine implementation rules,improve the information disclosure system and strengthen supervision and punishment,deepen the reform of state-owned enterprises to promote them to perfect modern enterprise system.