XY Company Equity Refinancing Case Study

With the continuous development and improvement of China's capital market,the company's financing channels are also more diversified.The allotment,issuance and convertible bonds are the unique equity refinancing methods of listed companies,with loose conditions,quick approval,and low financing costs.Features are widely favored.However,listed companies have problems such as excessive financing,unclear use,and declining performance in the process of equity refinancing,which has become the focus of domestic scholars on the refinancing behavior of listed companies.In order to improve and manage the equity refinancing behavior of listed companies in China's capital market,the most important thing is to be able to accurately evaluate the impact of listed companies in China on the company's performance after equity refinancing.The article uses a combination of theory and case,and selects the transportation company XY,which is less affected by market fluctuations,as the research object.First of all,the background and significance of the research are introduced.The latest domestic A-share market equity refinancing methods are counted,and it is found that "increasing fever" has become the main equity refinancing method.At the same time,the domestic and foreign listed companies' equity refinancing preferences and effects evaluation methods And the effect evaluation conclusions are introduced.Secondly,it conducted in-depth research on the equity refinancing process of XY companies in 2014,2016 and 2017,and once again clarified the meaning and classification of equity refinancing,the motivations for the selection of equity refinancing methods for listed companies,and the methods and basis for evaluating the effectiveness of equity refinancing.Under the precursor of the theory,the motivation and effect of the three equity refinancings of the company are studied.Select the indicators of profitability,solvency,operating ability and growth ability from 2013 to 2017 to analyze the impact of each equity refinancing behavior on the company's financial performance.The cumulative excess return rate,price-earnings ratio,and price-book ratio are selected as indicators to evaluate the company's short-term market performance and long-term market performance.The "Z-score model" is used to obtain values for different time periods,and the company's financial risk is evaluated from an overall perspective.Finally,the article puts forward some enlightenments after researching and analyzing the case of equity refinancing of XY company.Mainly include: When making listed equity refinancing options,listed companies must fully consider multiple factors such as national policies,corporate strategic layout,and the feasibility of financing projects;when selecting financing methods,they must consider financing costs,capital structure,financial indicators,Changes caused by different financial data such as financial risks;in the use of funds after financing,guarantee the use of funds and avoid waste of resources caused by idle funds.