Research On Market Situation,Investors' Concern And Discount Rate Of Private Placement

In recent years,there are four ways of equity financing in China: public issuance,allotment,directional additional issuance and convertible bond issuance.Ten years ago,the main ways of financing were allotment and public issuance.However,since the promulgation and implementation of the measures for the administration of securities issuance of Listed Companies in 2006,the number and scale of listed companies using directional additional issuance for financing began to develop in a gushing way Compared with other financing methods,SEO has the advantages of low cost,low threshold,simple process,etc.in the past 10 years,it has made significant development advantages,and gradually become the first choice of financing methods for listed companies.In order to standardize and guide the financing capital of listed companies to flow into the real economy,China Securities Regulatory Commission revised and promulgated two documents related to targeted issuance in 2017,namely,detailed rules for the implementation of non-public Development Bank shares of listed companies and question and answer on issuance supervision-regulatory requirements on guiding and regulating the financing behavior of listed companies.These two documents have made clear and specific restrictions on the issuance time,scale and pricing of directional additional issuance.The implementation of the new policy not only strengthens the standardization and fairness of directional additional issuance,but also further guides the rational investment behavior of the capital market.As private placement is widely used by listed companies,some problems arise.More and more researchers begin to focus on the issue of the discount rate of targeted issuance.In view of this phenomenon,there are some generally recognized interpretation principles in academia,such as information asymmetry,liquidity compensation,interest transmission,etc.At the same time,the theory of investor concern has gradually risen to its development into a new hot field,which has attracted more and more attention of researchers.The theory holds that investors can only maintain limited concern in the face of massive stock information,and limited concern makes investors appear limited rationality,which will lead to irrational cognition ofinvestors,and eventually lead to investment behavior deviation.In the case of limited attention,investors are more inclined to buy stocks of their own concern,because in the face of thousands of stocks to choose from,they only know the stocks of their own concern or star stocks and make a decision that is enough to buy.This kind of irrational behavior will affect the pricing of the secondary market,and then lead to the discount rate of the additional issue.Secondly,different market conditions also have a certain impact on the discount rate of additional issuance,especially in the case of information asymmetry,investors' sentiment will be disturbed by market fluctuations.Therefore,this paper focuses on the specific performance of the discount rate under the influence of market conditions and investors' attention,and then explores the mechanism of the impact of the two on the discount rate.Through my research,I hope to provide some help for investors to treat the discount rate of stock issuance rationally,protect their own rights and interests rationally,and promote the healthy and positive development of the capital market.At the same time,further enrich the theoretical research on the discount rate of directional additional offering.The main contents of this paper are as follows: 1.The mechanism of the discount rate of the private placement of listed companies,whether the private placement of shares is to convey the benefits to the major shareholders or to attract potential investors;2.The relationship between the investors' attention and the discount rate of the private placement;3.The relationship between different market conditions and the discount rate of the private placement;4.The relationship between the market conditions,the investors' attention and the discount rate of the private placement In other words,under the regulation of different market conditions,investors pay attention to the impact on the discount rate of directional additional issuance.In view of the above content,the author focuses on the statistical analysis and multiple regression analysis in the research process.The innovation of this paper mainly comes from the novelty of the research angle.This research studies the discount rate of directional additional offering from the two angles of market situation and investors' attention.In this paper,the listed companies in the gem from 2014 to 2016 are selected as the research samples to study the discount rate of the targeted issuance.It is found that investors' attention has a significant positive correlation with the discount rate of directional issuance,and different market conditions have a significant negative correlation with the discount rate of directional issuance.However,under the joint action of investors' attention and different market conditions,there is no significant impact on the discount rate of directional issuance.This study provides a theoretical basis for investors to make rational investment,and also provides a reference for regulatory agencies to regulate the process of directional issuance.