Empirical Research On The Stock Performance And Factors Of Private Equity Placement In Chinese A-share Market

Private equity placement has been the main financing tool of listed firms ifter the split-share structure reform in China's security market.At present,the study of stock performances of private equity placement has become one of the hot spot of the security market in academic circles.However,although the domestic scholars have already been researching on the stock performances of private equity placement in our country A-share market in recent years, compared with studies abroad, the domestic private equity placement appeared latter, so the researches related to stock performances of private equity placement are still immature.Most demestic scholars study this problem only as a whole, and don't subdivid the type of private equity placement for further research. This article attempts to probe into the stock performance of private equity placement and finds the factors that affect the stock performance in our country A-share market.The article firstly analyzes the stock performance of private placement theoretically. Based on the studies of predecessors at home and abroad on private equity placement, this article concludes asymmetric information hypothesis, monitor hypothesis, managerial entrenchment hypothesis, window of opportunity hypothesis, shareholders control rights hypothesis and growth opportunities hypothesis, then come up with relatively innovative hot-cold market hypothesis and supervisory hypothesis and four research assumptions. Besides,this article takes 365 A-share listed companies'private equity placement events which happened between January 1,2006 and Augest 31,2010 as samples,and researchs abnormal returns of 20 days before and after the private equity placement announcement day by the board of directors, using event study method, then creatively arrives at conclusions that:(1)The short-term stock performances of private equity placements are significantly positive.(2)The short-term stock performances of private equity placements associated with controlling shareholders are significantly better than those with non-controlling shareholders.(3)The short-term stock performances have no significant relationship with the market situation of bull or bear market.(4)The short-term stock performances vary significantly with the change of policy which shows that China's stock market to some extent exists the phenomenon of "Policy Market".The article analyzes emipirically the factors that affect the stock performance of private equity placement in China's A-share market.Based on analyzing and explaining the factors,this article firstly come up with three regression modles which are respectively associated with a sample classified by bull and bear market conditions, a sample classified by having controlling shareholders or not and a sample with data before and after certain policy. Then this article performs correlation analysis and test for multi-collinearity to each explained variables.Lastly,this article makes OLS regression and gets the conclusions that: (1)The Dummy variable about whether it is bull or bear market is not significant, the Dummmy variable about whether having controlling shareholders or not and the Dummy variable about whether policy is changing are significant relatively. A listed company's relative financing size of private equity placement and asset-liability ratio one year before announcement day have significantly positive effect on the short-term stock performances,while the discount on equity price has significantly negative impact on it.Tobin-Q has different significance in different CAAR, but parameters estimation is all positive.The size of company and share holding concentration has no significant impact on the short-term stock performances.The article is divided into six parts, each part is as follows:the first part is the preface, introducing the study background, meaning, ideas,structure and innovative points;the second part reviews researches at home and abroad; the third part is the part of theoretical analysis of innovative hot-cold hypothesis and Supervisory hypothesis and four research assumptions of this article;the fourth part researchs abnormal return using event study method; the fifth part performs OLS regression on the factors that affect the stock performance;the sixth part reaches to conclusions of the article, giving some suggestions and pointing out the inadequacy of the study.