Research On The Motivation And Financing Effects Of GEM's Continuous Private Placement

As an important method of refinancing in the capital market,private placement has raised a large amount of funds for listed companies,which can effectively solve the financing difficulties faced by the company in its development.With the continuous improvement and perfection of the CSRC's detailed rules on private placement,the method of refinancing in the capital market will become more standardized and rationalized.Although the downward trend in the scale of fixed-income financing in the A-share market has been obvious in recent years,the formal implementation of the new refinancing regulations in February 2020 indicates that the fixed-income market will continue to pick up in the future.Therefore,on the basis of a large amount of literature research,this article uses typical case analysis and event research to analyze the financing effect of company GeLinMei's continuous directional issuance,with a view to providing reference for related companies.This article first summarizes the research achievements of domestic and foreign scholars on the directional additional issuance motivation and financing effect,followed by the definition of the directional additional issuance and financing effect,and a detailed elaboration of the information asymmetry theory and the economic consequences theory.Secondly,a case analysis was carried out,after separately summarizing the development status of company GeLinMei,the process of previous targeted issuance,the use of funds raised and the rationality of the targeted issuance plan;the specific analysis was carried out from the three aspects of company development,capital risk and financing methods.Motivation for private placement.Then,under the framework of economic consequences theory,from the four dimensions of market announcement effect,use efficiency of raised funds,investment efficiency and financing risk control,the financial effects of company GeLinMei's continuous directional issuance are analyzed.Finally,the research conclusion of this paper is drawn: the short-term market response of company GeLinMei's directional issuance is positive,but the continuous directional issuance has not shown an optimistic trend in the subsequent market response;at the same time,the capital use efficiency and investment benefit of company GeLinMei in continuous directional issuance It also showed a high level,and its financing risks were also well controlled.In addition,on the basis of the research conclusions,this article puts forward the following suggestions on how other companies can effectively conduct continuousprivate placement financing: First,it is appropriate to introduce strategic investors or controlling shareholders to participate in private placement;Second,it is reasonable and effective to control the financing risk of continuous private placement;third It is to effectively use the raised funds,improve the efficiency of fund use,and enhance the company's profitability.