An Analysis Of The Performance Of The Holistic Listing Based On Private Placement

Along with the finish of share merge reform and the times of all-circulation coming, more and more big shareholders inject the assets into the listed companies, and then achieve these assets holistic listing. Especially with the implement of"Measures for the administration of securities issuance of listed companies"and"Administration of the Takeover of Listed Companies Procedures", non-public shares as payment becomes legal and makes private placement becoming the main mode of holistic listing. The holistic listing based on private placement can generate what M&A performance becomes the issue of common concern.This paper covers both theoretical analysis and case study of the M&A performance generated by holistic listing based on private placement. The article first defines relative concepts about the holistic listing based on private placement and summarizes relevant basic theories. Then theoretically analyses the M&A performance generated by holistic listing based on private placement from five aspects, namely scale effect, related party transaction, horizontal competition, big shareholders'control rights and synergy effect. Through theoretical analysis, the results show that holistic listing based on private placement can generated positive announcement effects and good financial performance. In addition, this paper taking XCMG Construction Machinery Co., Ltd as the research object carries out a case study, respectively adopting event study and accounting research analyzes the announcement effects and financial performance of this event. Through analysis of the case, the results show that the CAR of five days before and after the announcement day is 25.89%, so the holistic listing event actually raises share price of the listed company. And the financial performance of the holistic listing year has greatly improved, it reflects in the increasing of the debt-paying ability, operation ability, profit ability and growth ability. In the end, it points out the problems that the companies should pay attention to and gets some revelations from the case.