Research On The Impact Of Private Placement On Competitors In The Same Industry

The announcement effect of my country’s A-share private placement market has aroused great attention from domestic scholars,industry and regulators.However,there are few literatures from the perspective of the impact of fixed-increasing events on competitors.Therefore,the main research question of this article is the private placement incident.The impact of the stock prices of competitors in the same industry and the decision-making behavior of management.On the one hand,the research results of this article will provide a policy basis for the regulatory authorities to formulate and improve policies related to private placement,and further exert the resource allocation function of the capital market and serve the real economy.On the other hand,the research results of this article can provide investors with scientific decision-making Strong decision-making basis to help them correctly understand the impact mechanism of fixed-increasing events on competitors.This article first summarizes the domestic and foreign literature on different research directions of private placement,understands the cutting-edge results of private placement announcement effects and information spillover effects,and then proposes related research hypotheses based on the theory of competition effects and contagion effects.The data of private placement events implemented by my country’s A-share listed companies in 2019 is used as a research sample.Through the establishment of a multiple regression model,it is verified that the information spillover phenomenon in my country’s A-share fixed-income market and the impact of fundraising objectives and the competitiveness of competitors relative to the industry The extent of the impact of information spillovers.In addition,this article also establishes a double differential model to study how fixed-increasing events affect the follow-up issuance behavior of competitors in the same industry,as well as strategic fixed-increasing events on the mergers,operating behaviors,and financial behaviors of competitors in the same industry.Performance and the impact of management’s disclosure behavior.Main conclusions:(1)Private placement incidents will bring information contagion spillover effects to competitors in the same industry;(2)Strategic private placement incidents will alleviate the information contagion spillover effects brought to competitors in the same industry;(3)The same industry Competitors’ follow-up private placement is related to the fact that the company has positive excess returns during the event period.Competitors in industries with a higher industry concentration are more likely to become followers;(4)The company’s strategy in the face of the event In the case of the announcement of the type of fixed increase plan and the threat of future competition,competitors in the same industry will actively carry out mergers and acquisitions and reorganization activities in the next quarter.At the same time,they will strengthen working capital management to improve operating efficiency and increase the disclosure of management performance forecast information to improve The financial performance of competitors in the same industry in the next quarter.