Private Placement,Equity Structure And Operating Performance

Directed issuance is a form of refinancing of non-public issuance of new shares to a specific target(not more than 10).Directed issuance first appeared in the United States in the 1930s.Compared with foreign countries,China's directional increase initiated late.Until 2006,with the split share reform as an opportunity,targeted issuance due to its lower issuance threshold and simple auditing.The advantages of procedures such as procedures,low issuance costs,ctc.which are not available for refinancing of other stocks,quickly gained the favor of listed companies.Until now,it has been far more than equity refinancing such as allotment,convertible bonds and public offerings,and it has become a publicly listed company.The preferred method of refinancing the company occupies an indispensable position in the capital market.While private placements are becoming more popular,for investors and listed companies,they are increasingly concerned about the changes in the operating performance of listed companies after the private placement.Good business performance is an affirmation of this form of private placement and issuance of funds.The influence of listed company's operating performance not only helps the listed company to make reasonable financing decisions,but also investors are more likely to make rational investment decisions after knowing the changes in the operating performance of listed companies after the private placement.At the same time,a sound governance structure has a crucial influence on the operating performance of listed companies,and equity structure is an important part of the corporate governance system.The private placement is an act of equity refinancing.After the listed company completes the private placement,its ownership structure will change.Therefore,the relationship between the ownership structure and the changes in the equity structure after the completion of the private placement and the changes in the operating performance of the listed company are studied.It is very necessary.This article takes a sample of listed companies that have completed private placement in the A-share market of Shanghai and Shenzhen stock markets from 2010 to 2013.First,using 2009-2016 financial data to evaluate listed companies before,during,and after the private placement Three-year business performance;Then based on principal-agent theory,information asymmetry theory,and supervisory effect theory,the theoretical analysis of the changes in the operating performance of listed companies after private placement and the changes in the ownership structure before and after the private placement have been performed on the operating performance of listed companies.,and put forward related research hypotheses;then make a descriptive analysis of the sample's operating performance and equity structure,and establish an empirical test by establishing multiple regression models.The study finds that:after the private placement,the listed company,s operating performance has not been significantly improved.Further from the perspective of the equity structure,the increase in shareholding ratio and equity concentration of institutional investors after the private placement has improved the operating performance of listed companies.There is no significant correlation between the changes in the shareholding ratio of senior management and the degree of balance of ownership and the improvement of the operating performance of listed companies.Finally,combining the current situation analysis and empirical conclusions,this article gives relevant recommendations to the supervisory level,listed companies,and investors respectively:The supervisory level should improve the related systems for private placement,guide listed companies to make rational financing decisions,and listed companies should improve the corporate governance system.To enable independent directors and supervisors to play their role;investors should strengthen the concept of rational investment and avoid blind investment.