Research On The Short-term Market Reaction Of The Private Placement And Its Influencing Factors

The 18th National People's Congress of the Communist Party of China put forward the concept of "Beautiful China" on November 8,2012,emphasizing that we need to put the construction of ecological civilization in the prominent position and combine it with China's economic construction,cultural construction,political construction,social construction and all other aspects of the whole process,and strive to build a beautiful China.After the concept was raised,it immediately set off a wave of investment in the capital market,investors invest a lot in the field one after another.As the refinancing mode of private placement,because of its comparative advantages,its low threshold,and its low cost,it has quickly attracted a lot of people to focus the "Beautiful China" concept of stock market,which leads to the increase in the scale of successive years.This paper studies the short-term market influence from the perspective of "Beautiful China" concept stocks and further explores its influencing factors,hoping that the listed companies in this field will be refinanced by private placement to test their issuance of the market reaction and provide relevant guidance and recommendations for the majority of the capital demander on our "Beautiful China" concept stocks.This paper also studies the influence of the private placement in the "Beautiful China" concept of stock market can guarantee the "Beautiful China" concept stocks market stability and can be conducive to the long-term steady development of the market and promote a strong economic support for the country's policy making.In this paper,we use the incident research method to study the short-term market reaction of the private placement of the "Beautiful China" concept stocks listed in China from 2013 to 2015.As the event window,the average excess return rate and the average accumulated excess return rate in the window period are tested and tested for the short-term basis.We also select the 10 trading days before and after the event window as a study.And then the impact of short-term market reaction factors were tested,the excess cumulative yield are considered as the dependent variable,we have established the regression analysis of the multiple linear regression equation of cumulative excess return on the influence of the listed company size,subscription object,ownership concentration,issue discount rate,asset-liability ratio,the size of the six additional factors.d.The results show that:(1)"Beautiful China" concept stocks have significant positive returns over 10 trading days before and after private placement,and short-term market performance is positive;(2)The short-term market performance of "Beautiful China" has positive correlation with the subscription object of listed companies,which is related to the size of the company and the discount rate of the issuance.It confirms the information asymmetry hypothesis and the company's quality hypothesis in the study of the announcement effect.At the same time,this article puts forward the following suggestions:(1)to encourage enterprises,especially small and medium-sized and emerging enterprises,to raise funds in a way that is directed to raise money;(2)to improve the system of asset appraisal and disclosure in the process of targeted rights issue and the corresponding pricing mechanism;(3)to guide small and medium-sized investors and enterprises concerned properly;(4)to improve the construction of directional secondary issuance system in our country.To sum up,in the policy environment that our government pays attention to the construction of ecological civilization,the "Beautiful China" concept companies using private placement as its effective means of financing is feasible.