Research On The Impact Of Market Timing In Seasoned Equity Offering On Capital Structure

For listed companies to maintain survival and development,financing is the necessary activity to be carried out.Seasoned equity offering in financing is an important way to solve the problem of financing for the development and expansion of listed companies.Some basic assumptions about the use of traditional finance to study seasoned equity offering,such as investor rationality and market effectiveness,are increasingly being questioned by people.Therefore,from the perspective of the market is not completely effective,the external investors are irrational,foreign scholars study the impact of the capital market environment on the seasoned equity offering options of listed companies,focusing on the market timing behavior of seasoned equity offering,the issue of the impact of market timing in seasoned equity offering on capital structure is also becoming more and more concerned.Compared with foreign capital markets,China's capital market has a short history of development and a weak market system.In order to regulate and stabilize the market and guide the correct development of the market.A number of systems related to seasoned equity offering have been issued.The establishment of these seasoned equity offering conditions has made the degree of freedom in the market timing of the listed company's seasoned equity offering subject to institutional constraints.Therefore,in combination with the government supervision in China,it is of great significance to study the impact of market timing in seasoned equity offering on capital structure.This paper takes the listed companies with seasoned equity offering in the A-share market in 2008-2017 as a sample.Based on the analysis of relevant theories and literatures,this paper empirically examines the impact of the market timing choice behavior in the listed company's seasoned equity offering on the capital structure.The article is divided into five parts: The first part is the introduction,Mainly expand from the research background and significance,previous literature review and innovation points and deficiencies.The second part is the theoretical basis,which mainly introduces the theory related to capital structure and the mechanism of the impact of market timing in seasoned equity offering on capital structure.The third part is the status quo analysis,including the current situation of seasoned equity offering scale,the status quo of seasoned equity offering supervision,and the status quo of the impact of market timing in seasoned equity offering on capital structure.The fourth part is empirical research and results analysis,which is divided into the current impact and continuous impact analysis of capital structure.The conclusions and policy recommendations of this paper are given in the fifth part.The study draws the following conclusions: Under the government supervision,the market timing choice behavior of seasoned equity offering in China's capital market has an impact on the capital structure of listed companies in the current period,mainly by changing long-term liabilities to change the capital structure.The impact is not sustainable.That is to say,the listed company will choose the market timing of the seasoned equity offering and obtain the equity refinancing in the capital market,and its long-term liabilities will be reduced accordingly,thereby reduce the asset-liability ratio of listed companies.The research in this paper enriches the application of the market timing of the seasoned equity offering in China's capital market,which is of great significance for understanding the seasoned equity offering activities of listed companies.It has certain reference value for investor education,listed companies' own operations and the improvement of government supervision.