A Study On The Comparative Analysis Of Financing Effects Of Two Private Placement Of Xinzhu Corporation

From 1990 to 2021,China’s capital market has been for 31 years.As a means of refinancing,private placement has the advantages of simple procedures and low cost,and has been favored by many listed companies.Since its birth in 2006,listed companies have taken private placement as the preferred financing method.Domestic and foreign scholars’ research in the field of private placement mostly focuses on a single private placement,or in the early stage of the development of private placement,there are few cases of two private placements of Listed Companies in China,and the samples of multiple private placements are eliminated.The actual situation is that the proportion of fixed increases more than once is up to 55%,and multiple fixed increases will become a common phenomenon.Therefore,considering the impact of two private placement on listed companies,this thesis can enrich the theory of private placement and help to make the analysis of financing effect of private placement more complete.This thesis selects Xinzhu Co.,Ltd.,a company listed in 2010,as a case study.The company conducted private placement in 2012 and 2019 respectively.The author makes a comparative analysis of the data changes and operation of the two private placements of the company,and uses the event research method to analyze the short-term announcement effect of the two private placements;At the same time,the financial analysis method,Tobin Q value calculation and EVA performance evaluation are used to make a comprehensive analysis of the long-term financing effect of the company’s two fixed increases.Through the analysis of the two fixed increases of the case company,the first fixed increase is to raise funds for new projects,focus on the company’s long-term development objectives and expand the company’s business,while the second fixed increase is to repay the loans of financial institutions.In the short term,through the event study method,it is found that the short-term announcement effect of the company’s first fixed increase is not as good as that of the second fixed increase.However,in the long run,through the financial performance analysis,the financial performance indicators of the first fixed increase are better than those of the second.Although the two fixed increases did not make the company surpass the same industry,they reduced the gap with the same industry;Through the Tobin Q value analysis,the Tobin Q value of the company is greater than 1 and continues to increase in the three years before and after the first fixed increase,while the Tobin Q value of the company is less than 1 and continues to decrease in the three years before and after the second fixed increase;Through the analysis of EVA value,the EVA value of two fixed increases is negative.Therefore,the long-term positive effect of the first fixed increase on the company is much greater than that of the second fixed increase.This thesis finds that the two private placements of the company can bring short-term value improvement to the company;Focusing on the long-term development goals,the company invests in new projects for private placement,which can better increase the long-term value of the company;The change of the nature of the company has not significantly improved the long-term performance of fixed growth.In order to improve the financing effect of listed companies,listed companies should focus on the company’s long-term operation and development,make rational use of funds to invest in new project construction and new product research and development,enhance the company’s comprehensive ability,make rational use of funds and improve the asset liability structure;Investors should clarify the purpose of fixed increase of listed companies and rationally participate in market transactions;Intermediaries should strictly perform their supervision responsibilities and strengthen the supervision of the quality of information disclosure of issuers and subscribers;Regulators should strengthen the supervision of subscription institutions for additional issuance and the use of raised funds,extend the lock-in period of fixed increase,protect the interests of small and medium-sized investors,and prohibit additional issuance arbitrage.