Research On The Announcement Effect Of Private Placement In Chinese A-share Market

The “Regulations on the Administration of Securities Issuance of Listed Companies” issued by the Securities Regulatory Commission in 2006 for the first time specified the issuance conditions and procedures related to private placements in legal form,providing a legal basis for the actual operation of private placements.Compared with other refinancing methods,private placements The threshold for additional issuance and low cost have gradually become the most important method of refinancing in China since 2006,which has aroused the attention of the academic community.At the same time,the surplus management in the process of directional additional issuance has always been a hot issue in the academic community.The historical literature classified the targeted issuance by issue object,and studied the announcement effect of fixed addition and the relationship between fixed addition and earnings management from the perspective of the type of directed issuance.Before the fixed increase,the company will choose different earnings management behaviors according to the type of targeted additional issuance,but few literature discusses the relationship between the type of targeted additional issuance,earnings management and the announcement effect.There are significantly different announcement effects and earnings management behavior,so there is reason to doubt whether there is a connection between the type of private placement,earnings management and stock price fluctuations? Does earnings management have an intermediary role between the type of private placement and the announcement effect?Therefore,the purpose of this paper is to test the announcement effect and earnings management behavior of different types of private placements,and to verify the intermediary role of earnings management.This article takes 1177 listed companies in China's A-share market from 2013 to 2017 as the research object,and analyzes and verifies it from four aspects:(1)Will there be significant differences within a period of time after the implementation of the fixed increase? Stock price volatility effect;(2)Whether there are significantly different announcement effects for different types of private placement;(3)Whether listed companies will choose different earnings management behaviors according to different types of fixed increase before new shares are added;(4)If above The research is significant,whether there is a significant intermediary role in earnings management.The study found that the announcement effect before and after the announcement date of the directional additional issuance plan of the A-share market in China is significantly positive,the announcements of different types of directional issuances are significantly different,and listed companies will choose different earnings management behaviors in the first quarter of directional additional issuance according to different issuance targets.Specifically,when the major shareholders and their related parties participate in the private placement,the listed company will conduct negative earnings management.Prior to the private placement of institutional investors,the listed company will conduct positive earnings management,but the earnings management will be subject to private placement.The intermediary effect in the type and short-term stock price fluctuation is not significant.