Chinese Shanghai Stock Exchange A-share Listed Company Private Placement Investment Efficiency Research

Since the promulgation of the Measures for the Administration of Securities Issuance of Listed Companies in 2006,the private placement has gradually become the main way of refinancing the equity of listed companies in China.But blind private placement also poses risks for listed companies and investors.However,since 2016,the securities regulatory authorities issued relevant policies to strengthen the control over the use of private placements and financing procedures.In this context,the research on the issue of private placement has become the focus of attention in the social and academic fields.Through literature review,this paper finds that most scholars at home and abroad study investment efficiency from the aspects of investment scale and financial performance,but private placement is a special equity refinancing channel,which enhances the comprehensive strength of listed companies and increases shareholder wealth.If only a single dimension indicator is considered,it is difficult to comprehensively examine the impact of the directed increase issuance on the investment efficiency of listed companies.This paper takes 287 Shanghai A-share listed companies with private placements from 2014 to 2015 as samples,and selects 11 indicators from the company's financial situation and core competitiveness.The factor analysis method is used to construct a comprehensive score model for the investment efficiency of private placement,and the comprehensive scores of the sample companies in each of the five years before and after the private placement are calculated,and the investment efficiency of the sample companies before and after the private placement is compared.In order to further study whether there is a difference in the investment efficiency after the private placement of different objects,this paper analyzes the difference in investment efficiency between the three major shareholders,institutional investors and the two cases.Through the above empirical research,the following conclusions are drawn: the listed company has the most obvious improvement in investment efficiency in the year of private placement,and then the effect of investment efficiency is weakened,and it returns to the level of the year before the private placement in the third year after the private placement.The investment efficiency of private placements for institutional investors is better than the private placement with large shareholders.Finally,combined with the results of this study and the actual situationof the market,the following recommendations are given from the three levels of companies,institutional investors and regulatory authorities.The company strengthened the use plan of raised funds before the increase,focusing on the improvement of the company's core competitiveness,strengthening the internal control management level in the investment process,and doing a good job of internal supervision in the investment process.Institutional investors actively participate in private placements under the premise of rational judgment.The regulatory authorities strengthened the comprehensive examination and approval of private placement companies and strengthened the information disclosure requirements in the process of investment in private placement funds.