JSS  Vol.3 No.10 , October 2015
The Empirical Study on the Relationship between Listed Companies’ Private Placement and Operating Performance
—Based on the Empirical Data from 2009 to 2014
Author(s) Guoxi Wang*, Yanhong Li
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.

Cite this paper
Wang, G. and Li, Y. (2015) The Empirical Study on the Relationship between Listed Companies’ Private Placement and Operating Performance
—Based on the Empirical Data from 2009 to 2014. Open Journal of Social Sciences, 3, 59-66. doi: 10.4236/jss.2015.310009.
References
[1]   Wruck, K.H. (1989) Equity Ownership Concentration and Firm Value: Evidence from Private Equity Financing. Journal of Financial Economics, 23, 3-28. http://dx.doi.org/10.1016/0304-405X(89)90003-2

[2]   Hertzel, M.G. and Smith, R.L. (1993) Market Discounts and Shareholder Gains for Placing Equity Privately. Journal of Finance, 48, 459-485. http://dx.doi.org/10.1111/j.1540-6261.1993.tb04723.x

[3]   Marciukaityte, D., Szewcyk, S. and Varma, R. (2005) Investor Overoptimism and Private Equity Placements. Journal of Financial Research, 28, 591-608. http://dx.doi.org/10.1111/j.1475-6803.2005.00141.x

[4]   Xu, S.F. (2010) Private Placement of Listed Company’s Announcement Effect and the Influence Factors. Securities Market Leader, 5, 65-72.

[5]   Zhao, W.D. and Zhao, A.Q. (2012) Empirical Research on Long-Term Shareholder Wealth Effects of the Private Placement. Shanghai Economic Research, 1, 42-52.

[6]   Kong, Y.S. (2014) Research on Private Placement, Different Objects, Company Growth—Based on the Empirical Evidence from Chinese A-Share Market. Communication of Finance and Accounting, 12, 58-60.

 
 
Top