An Empirical Study On The Impact Of Listed Company's Equity Refinancing On Company Performance

With the development trend of globalization in large enterprises,a large amount of financial support is needed to expand the scale of enterprises and the ever-expanding investment field.Therefore,diversified financing means is an important prerequisite for the continuous development of a company.China's equity refinancing method emerged later.In 1993,there was a rights issue in the Chinese securities market.So far,the equity refinancing has only been developed in China for 25 years.Our country is not the same as the western countries.Due to the existence of special shareholding structure in China,the shares of listed companies in China are divided into tradable shares and non-tradable shares.Despite the reform of the equity division,there are still some problems.While equity refinancing is more flexible,usually you can gain more objective at a time,and you can also through this kind of financing way to implement other backdoor listing of the company.The combination of various reasons led to the rapid popularity of equity refinancing in China's listed companies.In 2008,the amount of money that was obtained in the direction of the issue was already over IPO.Equity refinancing has become a popular financing method for listed companies in China.The research on equity refinancing is very important both in foreign countries and in China.So many companies have opted for equity refinancing in a number of ways.how does this kind of financing affect the listed companies in China?after a lot of money,the company's operating performance will go up or down?What are the reasons for the existence of equity refinancing that can have such an impact on the company's performance?These are all very well worth discussing.For domestic listed companies in the choice of the financing way,after the implementation of equity refinancing decision making in the management of the firm and securities market regulators corresponding system consummation aspect,this study also is very be necessary.Because our country national condition is different from the western countries,so the research results of scholars in western countries we cannot copy,but Chinese scholars for equity refinancing started late,and research direction are mainly concentrated on the study of equity refinancing policy changes.Therefore,this paper selects the listed companies of a-share listed in China's equity refinancing in 2011-2013 as the research object to discuss and analyze the business performance of the company because of the changes in the equity refinancing,and what factors have caused the company's performance to have such a change trend.It is expected to provide some useful references for the operators of listed companies,investors in the stock market and securities market regulators.This article first elaborated the research background and research meaning,to explain about operating performance change after the equity refinancing and influencing factors of the necessity of research.Then the paper introduces the research method,the overall research content and the innovation points of this paper compared with other research.The following is a review of the research results of the issue of equity refinancing in recent years,as well as the viewpoints of scholars on the impact of equity refinancing on business performance.Then summarize the views and form a literature review.And then the related theories of equity refinancing are summarized and introduced.On the basis of this,this paper puts forward the hypothesis of this paper,and provides support for the impact of equity refinancing on the operating performance of the company and the research on influencing factors.Empirical research is the key part of this paper.In this part,this paper focuses on the research objects of a-share listed companies that have adopted equity refinancing in 2011,2012 and 2013.For the implementation of equity refinancing before and after three years of the sample company operating performance change descriptive statistics analysis and significance test.Use EPS,ROA,ROE and OPE as a measure of company performance.In order to prevent the influence of the industry factors on the analysis results,the paper also observed the direction of the changes of the indicators after the industry factors were eliminated.And the empirical results are analyzed longitudinally.Next,the correlation analysis and regression analysis are carried out on the influencing factors behind the operation performance changes,and the regression results are analyzed.The results of empirical research can be concluded as follows:After the company implemented the equity refinancing,the overall operating performance of the company showed the trend of declining after refinancing.It is proved that the equity refinancing will have a negative impact on the company's operating performance.Moreover,if the equity concentration degree of the company is relatively high before refinancing,the decline in performance of the company after refinancing will be slower than that of other companies.The bigger the free cash flow before the refinancing,the more drastic the decline in the company's performance after the refinancing.The higher the company's price-to-book ratio in the year before refinancing,the more obvious the decline in corporate performance.In addition,if the company's largest shareholder is state-owned shares,that is,the listed company is a state-owned company,and its performance decline after refinancing is also significantly higher than that of private companies.In this paper,we're going to make some kind of suggestions on the future development of the public corporation and the market regulation floor,and hopefully the public will be able to get a better idea of the future of the corporation and the performance of the corporation,and it will be more effective.At the same time,we hope that the capital market will continue to develop and perfect the regulatory policies of listed companies,so that the resources in the market will be more effectively allocated and the capital market will develop in a benign way.There are three innovation points in this paper:First of all,this paper chooses A longer time span in the study of the change trend of the operation performance before and after the implementation of the equity refinancing of a-share listed companies,i.e.the comparative analysis of the operating performance of the company in the three years before the implementation of the refinancing and the three years after the implementation.By comparing than seven years(T,T-2,T-1,T,T + 1,T + 2,T + 3,)of the company's operating performance trends,to explore the equity refinancing on the operating performance of listed companies in our country has a positive influence or negative influence.Secondly,the sample selected in this paper is the company that implemented equity refinancing in 2011,2012 and 2013.The time span of the data used is from 2009 to 2016.In this time,the Chinese stock market has experienced a bear market also a bull market,therefore,can think this article selects samples is has certain representativeness.Finally,in previous studies,many scholars used single indicators,such as ROE,to measure the performance of enterprises.In this paper,four different indicators,including EPS,ROA,ROE and OPE,are used to measure the changes of the operating performance of listed companies,with a view to reaching more convincing conclusions through multi-index and multi-angle analysis.