The Large Shareholders' Subscription,Market Quotations And Private Placement Discount

Private placement of listed companies is to issue shares to a few specific investors to raise funds,it has become the mainstream way of equity refinancing in China's A-share market.It is often accompanied by a high discount rate in the process of private placement,and it is common that large shareholders may occupy the interests of minority shareholders of listed companies to themselves through the impact of new shares discount,and under the different market quotations,the discount of new shares subscribed by the large shareholders is quite different.So it is important to analyze the motivation,means and influence of large shareholders' interest transferring through the discount of new shares,combined with the market quotations in private placement,in order to standardize the behavior of large shareholders,maintain the order of the capital market and promote the steady development of the capital market.The date sample of this paper is the listed companies that has successfully implemented a private placement from Shanghai and Shenzhen A-share market between 2006 and 2016.This paper first analyzes the influence of the subscription of the large shareholders and their features on the discount,then discusses the moderating effect of the market quotations between the subscription of the large shareholders,their features and the discount rate of new shares,the study found that:First,from the perspective of the investment subject,the discount rate of new shares issued by large shareholders is higher than that of other investors participating in subscription.Second,the different subscription features of large shareholders have different effects on the discount rate of new shares,specifically,compared with the cash subscription,the discount rate of new shares is more higher when the large shareholders pay in assets,the subscription ratio and the subscription differences of large shareholders are positively correlated with the discount rate of new shares.Third,the better the market quotations is,the discount rate of new shares is more higher.Fourth,the better market quotations has strengthened the positive correlation between the subscription ratio of large shareholders and the discount rate of new shares,such results are also applicable to the subscription differences of the large shareholders,but the moderating effect of the relationship between the subscription mode and the discount rate of new shares is not significant.This paper also analyzes the influence of different property rights on the discount rate of new shares subscribed by the larger shareholders,the study found that:the discount rate of non-state-owned enterprises subscribed by the large shareholders is significantly higher than that of the state-owned enterprises,the subscription ratio and the subscription differences of the large shareholders,the market quotations have more significant impact on the discount rate in non-state-owned enterprises.Second,the effect of large shareholders' subscription mode on the discount rate of new shares is more significant in state-owned enterprises,and the positive moderating effect of better market quotations on the relationship between the subscription ratio of large shareholders,the subscription differences and the discount rate of new shares is more significant in the state-owned enterprises.The contributions of this paper are as follows:First,this.paper reveals the existence and the path of the interests transferring of large shareholders from the perspective of the discount rate,based on this,this paper test the impact of large shareholders' subscription in primary market and market quotations in secondary market on the discount rate of new shares respectively,further more,this paper compares the impacts differences between different property rights,so this research is very rich.Second,this paper analyzes the influence of the different subscription features of large shareholders on the discount rate of the new shares from the three angles of the subscription ratio,the subscription differences and subscription mode of the large shareholders,so this research is very deep and detailed.Third,on the basis analyzes of the large shareholder's participation in the private placement,this paper combined the different market quotations,and explores the moderating effect of the market quotations between the different subscription features of large shareholders and the discount rate of new shares,this makes the article more abundant.