Abstract
After the generation of private placement system, it is popular with the securities market and listed companies, it has become one of the main channels for enterprises to carry out equity refinancing, domestic scholars’ studies mainly focus on the purchase discount, big shareholders’ profit transfer problems, and problems with the company’s short-term effect, articles about private placement and operate performance are not enough, conclusions are also different, so it is very necessary for the empirical study on the relationship between listed companies’ private placement and performance by using the private placement experience of western countries and combining the reality of the capital market’s development of China. In this paper, by using factor analysis method and using Chinese A-share listed companies who have implemented private placement in 2010 as the samples, through calculating the samples’ comprehensive performance score from 2009 to 2014 and its average ranking non-parametric test, the results show that whether in the short or long term, private placement has a negative effect on companies performance, but the effect is not significant in statistics, the results will be more of reference value and practical significance, this paper will be beneficial for investors, the market regulator and the private placement’s follow-up study.
Highlights
In America, England and other western countries, private placement has become a popular way of equity refinancing since the 1990s
Along with the smooth completion of the reform of non-tradable shares, The China Securities Regulatory Commission issued “measures for the administration of securities issuance of listed company” on May 8, 2006, from on, as an equity refinancing way, private placement enters into a rapid development track, it is very popular with the securities market and listed companies and it has become the mainstream channel of equity refinancing
In this paper, using factor analysis method and using Chinese A-share listed companies which have implemented private placement in 2010 as the samples, through calculating the samples’ comprehensive performance score from 2009 to 2014 and its average ranking non-parametric test, the results show that whether in the short or long term, private placement has a negative effect on companies performance, but the effect is not significant in statistics
Summary
In America, England and other western countries, private placement has become a popular way of equity refinancing since the 1990s. In China, private placement is still an emerging thing, it is still not sound from the IPO mechanism to market regulation mechanism, and related theory researches are not mature. Along with the smooth completion of the reform of non-tradable shares, The China Securities Regulatory Commission issued “measures for the administration of securities issuance of listed company” on May 8, 2006, from on, as an equity refinancing way, private placement enters into a rapid development track, it is very popular with the securities market and listed companies and it has become the mainstream channel of equity refinancing. By the end of the June 18, 2015, listed companies have carried out 1900 private placement
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