The Research On The Influence Of Corporate Governance On The Chinese Listed Company's Discount Rate Of Private Placement

Private placement is currently one of the most commonly used equity financing methods for listed companies in China.The amount of funds raised through private placement is huge,and it is also a research topic that has attracted much attention in corporate finance.After reviewing a lot of research literature on private placement,I find that the private placement of listed companies generally has the problem of transferring benefits to major shareholders.The form of interest transfer can be high private placement discount rate,or cash dividends can be issued immediately after issuance or other forms.Among them,the high private placement rate discount is a very important form.After reviewing the research literature on corporate governance,this paper finds that a good corporate governance mechanism can play a positive role in reducing self-interested motives,reducing capital occupation,earnings management,improving financing efficiency,strengthening the protection of small and medium-sized shareholders,and improving business efficiency and so on.This paper believes that a good corporate governance mechanism can also play a positive role in reducing the discount rate of listed companies' private placement,and constructs the hypothesis that how the corporate governance influences the discount rate specifically and what the effects are based on the existing research,and conducted an empirical analysis.This paper divides corporate governance into three aspects:board governance,shareholder governance,and management governance.It believes that a higher proportion of independent directors,more directors,and more frequent board meetings held can help directors perform their supervisory functions better,so as to reducing the problem of benefit transfer of private placements,that is,reducing the discount rate of private placements;Too much concentration of equity will lead to almost unconstrained distribution of interests by major shareholders.The higher the concentration of equity,the higher the discount rate of private placements;Stock ownership incentive transforms management from a single agent to a dual role of owner and agent,enhances their enthusiasm and weakens their motivation to help manipulate private placement prices.The empirical results show that overall good corporate governance mechanism can reduce the discount rate of listed companies' private placement,which is beneficial to protect the interests of small and medium shareholders and the long-term development of the company.However,in particular,the election mechanism of independent directors,the reward and punishment system of directors,the popularity of management equity incentives,and the voice of minority shareholders are all in need of improvement.The innovation of this paper is that it explores the impact of corporate governance on the discount rate of private placement from the angle of the overall internal corporate governance mechanism.In addition to regarding the discount rate of private placement as a form of interest transfer,this paper also consider it as a financing cost.It provides reference for the regulatoryn rules and the protection of interests of small and medium shareholders.