The Research On The Performance After Equity Refinancing Of The Listed Companies In China

Equity refinancing is an important way of obtaining follow-up funds after the IPO of listed companies. In recent years, the heat of refinancing in the capital market of China can be comparable to the IPO. The performance of listed companies after refinancing has been more concerned by people and have not formed the system theory. Through the refinancing the listed companies acquire a lot of money and invest in new projects, which should greatly enhance their performance, but in fact just the opposite. In this context, this paper chooses the listed companies of refinancing as the sample for the study, researching the relationship between refinancing and business performance. Through this research and analysis, I hope that it can contribute greatly to refinancing theory.This Paper raises listed companies'business performance before and after seasoned equity offerings as the research subject, and use ROE as Measure Indicator. Firstly, In this Paper, on the basis of the classical finance theory in the West and domestic academies on the issue of equity refinance, analysis listed companies equity refinancing preference, status, characteristics from the point of theory. And make further analysis on deep-rooted reasons of the equity refinancing preference from internal factors and external factors. Then, theories and empirical analysis about the different option of financing methods such as seasoned equity offering and Allotment to the performance impact on the listed companies, By descriptive statistics analysis to the listed companies which had equity refinancing in 2007, researching the performance changes after the listed company's equity refinancing. Finally, according to the research conclusion, from the data in 2007 for equity refinancing companies we can see the business performance go down. In accordance with the analyses result, combined with the particular situation of listed companies, this paper make a few suggestions to the stock investors, listed companies and supervisor. It tries to provide some suggestions for our equity refinancing policy adjustments and financing methods of the listed companies.