A Study On Stock Price Reaction Of Private Placement Failure Of Listed Company

Since the China Securities Regulatory Commission issued the Measures for the Administration of Securities Issuance of Listed Companies in May 2006,the private placement has gradually become the main mode of equity financing in China.The number of listed companies and the total amount of financing funds for the implementation of private placements in the primary market have seen an explosive growth.Then,in order to regulate the financing behavior of listed companies,the China Securities Regulatory Commission has issued and revised the regulatory system,and the number of failed private placements has gradually increased.The existing literature mainly focuses on the announcement effect of listed companies with successful private placements and the long-term market performance of stock prices,but rarely pays attention to the stock price reaction of listed companies after the failure of private placement.Therefore,this paper analyzes the problem from both theoretical and empirical aspects.In the theoretical part,this paper analyzes the impact of the private placement failure event on the stock price of listed companies by combining the optimal capital structure theory,the opportunity window theory,the information asymmetry theory,the monitoring theory and the status quo of China's private placement market,and finds that the private placement announcement will be The public investors in the secondary market pass the signal of undervaluation of stock prices.After the secondary market investors are competing to buy,the stock price will rise in the short term,but when the listed company fails to issue additional shares,the "underestimation of expectations" will not be fulfilled or even lead to negative public opinion.At the time of speculation,the stock price has the possibility of falling back or falling.In the empirical part,this paper uses the event research method to statistically analyze the stock price fluctuations of the sample after the failure of the private placement,and BHAR as a measure to calculate the length of the stock price trend.Through empirical analysis,it can be found that the failure of private placement will have a negative impact on the stock price of listed companies.According to the research on the main board,the small board and the GEM,the conclusions are basically consistent with the overall sample,and the GEM is listed.The negative impact of the company's private placement failure event is greater than that of the main board and small board listed companies.Further research also found that there are differences in the company's stock price response before and after the release of the new regulations,and the negative impact of the announcement of the private placement after the release of the new regulations is greater than before the release of the new regulations.To further study the directional issuance after failing to affect the share price to the good factors,this article after failing to purchase shares positive excess yields as interpreted variable length of time,by choosing to release objects,before the first big shareholder shareholding and the causes of failure as explanatory variables,using multiple linear regression model,concluded that compared with other issuers,when a single major shareholder or a major shareholder is involved in a private placement,the issue of the failure of the issue has a greater negative impact on the share price of the listed company,and the higher the shareholding ratio of the major shareholders before the issuance,the greater the negative impact.