Research On Infiuence Of Private Placement On Iflytek Company's Financial Performance And Stock Gains

In the recent years,the number and the scale of private placement are both expanding rapidly in China's A-share market.Especially in 2016,when financing amount of China's A-share market breaks a record,reaching over 1,800 trillion yuan.Because of the fact that private financing has low threshold,distribution of low cost,and flexible pricing mechanism,private placement has become the main way for China's listed company to refinance.Then,China Securities Regulatory Commission might find the market defects and regulatory loopholes which are hidden behind its rapid development,so the commission revised relevant policy about private placement in 2017,adding some restrictions to the private placement market in China.It is attached great importance whether listed companies could improve their financial performance and increase their company values through the pattern of private placement.First of all,this paper will consider the field of relevant theoretical research results at home and abroad by analyzing and summing up relevant paper.Make a research from the development and related policy.lt will describe the background of China's private placement,revised policy,details and conditions of Kedaxunfei Company's three times private placements.On the basis of the information in the financial report and the stock market,this paper chooses Kedaxunfei Company as an example,using the method of combining theoretical research and case study to analyze its financial performance and stock gains before and after the private placements.Kedaxunfei is one of the high-tech enterprises in the field of AI in China,enjoying the stable increase in its operating income.It is watched and focused by many investors due to its private placing.Then,this paper will present the purposes and the specific circumstances of Kedaxunfei Company's three private placements in2013,2015 and 2016.Taking the short-term,medium-term and long-term as time dimensions,this paper will study the influence on its financial performance.Again in the second,this paper will study its short-time changes and excess rate of return in the stock market after private placement with the event research method.This paper will make a research of changes about the Tobin Q value,reflecting its investment valuesfor the company's investors.Besides,this paper will adopt financial indicator method,analyzing its situations about cash flows,profitability,solvency,operating capacity and growth ability,trying to study its long-time financial performance after its private placements,and find some problems in the company.Finally,this paper will choose some key financial indicators,and set up a model on the financial performance,figure out lated comprehensive scores,with making a comprehensive assessment to its long-time financial performance after its private placement.Through above research,I could find some operating problems in Kedaxunfei Company,such as shortage of operating cash flows,low profitability for inventory management,and unreasonable expansion to its sales scales.Last but not a least,this paper will put forward some relevant suggestions.