Research On The Motivation And Performance Of Private Placements:a Case Study Of Bohai Automobile Co.,Ltd

Listed companies often need a lot of funds to support their production and operation activities.Especially for some listed companies in a period of rapid development,the highest value is the company’s equity.Whether the company’s equity can be used as collateral to obtain capital This type of company is especially important.Compared with traditional equity refinancing methods,private placement has certain advantages.It has the characteristics of higher flexibility,lower initial cost and stronger liquidity.Therefore,listed companies are more inclined to raise the necessary funds through the implementation of private placement.However,existing research does not give a consistent conclusion on how private placement affects corporate performance,which is crucial for exploring the project financing of listed companies and the improvement of capital markets.Therefore,this article takes the two private placements of Bohai Automobile as a specific case,and analyzes the impact of private placement on Bohai Automobile from two different perspectives,namely,stock price performance and operating performance.This article combines existing theories to analyze how private placement affects corporate performance,and takes Bohai Automobile as a case to conduct empirical tests through event research and factor analysis,which provides a certain reference for the research on private placement and corporate performance..At the same time,this article analyzes the reasons that may lead to the adverse effects of private placement on corporate performance based on the research conclusions,and provides a reference for companies looking to improve their performance through private placement to determine whether private placement can solve their own problems and improve performance.The main research ideas and content of this article are: first,through combing and consulting the literature,giving a clear definition of related concepts,summarizing the relevant theories of private placement,and summarizing the existing research progress;secondly,combining with Bohai Automobile’s own case analysis,through Bohai Automobile’s background introduction,private placement process analysis and motivation analysis to clarify why Bohai Automobile conducts private placement,and what benefits the private placement may bring to Bohai Automobile;then,this article starts from short-term stock price performance and long-term operating performance First,use the event research method and factor analysis method to evaluate the impact of two private placements on the performance of Bohai Automobile;finally,this article will summarize the full text of the research and give basic conclusions.Based on the conclusions,this article will try to put forward specific policy recommendations and point out this article Limitations of research..Through the above research,this article draws the following conclusions: First,through the analysis of the specific process and motivations of Bohai Automobile’s two private placements,the main driving force for Bohai Automobiles to conduct private placements is to improve the company’s development strategy,national industrial policy support and orientation There are three advantages in the system of additional issuance.Secondly,the results based on the event research method show that the private placement in 2014 greatly increased the share price of Bohai Automobile,which was not only reflected before the incident but also after the incident.However,the private placement event in 2016 did not have as much impact on Bohai Automobile’s stock as it was in 2014.Then,the results based on the factor analysis method showed that the operating performance after the private placement event in2014 did not significantly improve,but its operating performance fell sharply in the subsequent 2015,although Bohai Automobile did not increase its operating performance after the private placement in 2016.It did not lead to a decline in operating performance,but it did not significantly improve its operating performance,which indicates that the directional additional issuance in 2016 did not play a role in improving the operating conditions of Bohai Automobile.Finally,we believe that private placement can only improve the performance of Bohai Automobile in the short term.In the long run,it does not mention the improvement of Bohai Automobile’s operating conditions.Summarizing the research of the full text,this article has two enlightenments,namely,private placement does not necessarily improve company performance,and my country’s multi-level capital market needs to be further improved.This helps listed companies better understand the impact of private placement on corporate performance.