Research On The Financing Effect Of Private Placement

Influenced by small and medium-sized enterprises,the high financing cost and financing difficulty have always been the key factors restricting their development,and vigorously developing direct financing is the fundamental way to solve this problem.For the New Third Board market,which only began to be listed to the receiving enterprises nationwide in 2013,most of them are small and medium-sized enterprises.If these enterprises want to finance and develop,private placement is the primary choice,which is favored by small and medium-sized enterprises for their unique flexibility,simple audit and low cost.Based on this background,this paper selects HC Technology Company as the research object for its private placement in 2017 The short-term market effect,long-term financial performance and corporate governance effect are the research content,and the case analysis of the private placement of HC Technology companies.This paper first sorts out the literature of domestic and foreign scholars on the research of private placement financing and economic effect,briefly introduces the relevant theories of private placement,and then focuses on the in-depth analysis of the selected case of HC Technology company’s private placement plan in 2017.Finally,the event research method is used to study the short-term market effect of private placement,the economic added value method and the financial index method to study the long-term financial performance of private placement,analyze the corporate governance effect of private placement through the equity structure,and summarize the relevant experience and enlightenment obtained from the cases,so as to provide reference for other enterprises.Through the case study and analysis of HC Technology Company,the use of the funds raised by the company’s private placement is mainly to supplement the working capital and expand the production of the enterprise,but did not invest the funds in product research and development and innovation.In addition,the research draws the following conclusions: first,the short-term effect of the private placement plan is significant,and the short-term market reaction is good after the private placement;second,the long-term financial performance improvement effect of HC Technology Company after the private placement is not significant,and the indicators have a downward trend;third,the company adopts the employee stock ownership plan and the intermediary investment structure after the private placement The effect of corporate governance has been greatly improved.In view of this situation,this paper puts forward relevant suggestions from different angles for HC Technology companies,new Third Board SMEs and investors for reference.