The Analysis For Stock Price Effect Of Private Placement Of Listed Companies And Its Factors

Since may 2006 "Administration of securities issuance of listed companies" published, the frequency and scale of private equity placement has raised more and more. Only in 2010, listed companies which have achieved a successful private equity placement is up to 151, that is almost three companies per week. The amount of funds raised by private equity placement is more than the sum of three ways of public issuance, allotment and warrant at the same period. The private equity placement has become a mainstream wan of equity refinancing in China's capital market.There are two samples selected in this paper. The sample one contains 84 events of A-share listed companies which have released announcement of private equity placement plan in the 2009-2010, and the sample two contains 220 events of A-share listed companies which have released announcement of private equity placement in the 2009-2010, seperately. By using the method of event analysis and multiple regression analysis, we examined the effects of share price of private equity placement, compared the two samples and futher analyzed the related factors. In this paper, we first reviewed the foreign and domestic documents about private equity placement and the system of private equity placement in China, then analyzed the effect of stock price by method of events study, examined the significance test for the cumulative abnormal return. After that on the basic of various theoretical hypotheses about the effect of stock price, summarized the corresponding factors as explanatory variables, took the cumulative abnormal return as the dependent variable, then established the multiple linear regression equation for regression analysis. The results of the study indicated that there is a significant positive effect to the event of announcement of private equity placement of listed companies in our country, which showed a significant positive correlation with the non-tradable share proportion in listed companies and trendency of overall stock market, and a signifcant negative correlation with the large shareholding ratio. Finally, we present the research findings and relevant policy recommendations.