Research On The Impact Of 2020 Regulations On Private Placement On Stock Return Atfer Lock-in Period

The private placement market is an important part of China’s capital market system,and its development process has experienced ups and downs.At present,private placement has become one of the most popular means of equity financing for listed companies.The implementation of the new rules of private placement in 2020 has further promoted the development of private placement.As of November 10,2022,248 listed companies have implemented private placement,with a total amount of516.259 billion yuan raised.However,with the implementation of the new rules on private placement,the shortening of the lock-in period,the increase of the issuance scale and the reduction of the issuance price will create more speculative space for private placement participants and form a complex impact on the capital market.At present,it has been about two years since the implementation of the new regulation.It is of practical significance and practical value to evaluate the implementation effect of the new regulation and its impact on the market.Based on 657 cases of private placement in the whole market from 2017 to 2022,this paper first analyzes the cumulative abnormal return in the event window through the event study method,and then further incorporates the abnormal return as the explained variable into the regression to examine whether the 2020 new rules of private placement will affect this effect,and uses the turnover rate as the intermediary variable to examine whether there is a sell-off phenomenon in the market,And further examine the role of the main provisions in the 2020 new regulations on private placement;Divide by the size of listed companies and the type of market they are in,compare the impact of the new regulations on listed companies in different sizes and different sectors,and observe whether the adjustment made by the 2020 new regulations on private placement in different sectors is reasonable;Finally,change the selection of the estimation window to test the robustness of the regression results.The research results show that:(1)According to the results of the event study method,it is confirmed that the lifting of the ban on private placement of restricted shares will have an impact on the market before and after the implementation of the new regulations;(2)After the application of the new rules,the abnormal return after the lock-in period decreased more significantly;(3)The analysis of intermediary effect shows that investor sentiment can be the most intermediary variable between the new regulation and the abnormal return,and the new regulation can affect investor sentiment,thus impacting the abnormal return;(4)Further analysis shows that both raising the upper limit of issuance quantity and lowering the lower limit of issuance discount rate will lead to further decline of abnormal returns;(5)Heterogeneity analysis shows that small and medium-sized enterprises are more vulnerable to changes in the new regulations,and the effect on large enterprises is not significant;The inter-market test shows that although the 2020 new regulations have relaxed the issuance threshold of the GEM,these listed companies are more vulnerable to the impact of corporate restrictions.Finally,in order to better play the guiding role of the private placement policy on private placement enterprises and private placement participants,this paper puts forward the following suggestions based on the research conclusions:(1)continue to improve the private placement management system,strengthen the approval and follow-up management of private placement issues,and improve the shareholding reduction system of private placement.(2)Strengthen the supervision and support of the GEM and other private placement of small and medium-sized enterprises;(3)Private placement companies need to improve their financial management level.