Investigation Of The Behavior And Marketplace-achievement About Listed Companies After The Reform Of Split Share Structure In China

During the period of split share structure, two phenomenons existed in China's listed companies: the equity refinancing preference and poor performance of equity refinancing. Domestic scholars have conducted a large number of researches into the equity refinancing, and generally attribute the reasons to the low cost of equity refinancing and China's special equity structure. However, whether equity refinancing will undergo changes in its methods and have improved efficiency after the reform of split share structure hasn't been researched into systematically. This thesis aims to conduct in-depth analysis of refinancing behaviors and short-term market performance after the reform of split share structure.This thesis illustrates the equity refinancing preference, methods and performance of listed companies before and after the reform. During the period of split share structure, the listed companies take maximizing the profits of non-tradable shareholders as the goal and keep refinancing, without any consideration of the return of investment; the management of the companies only care about the book value per share increases, instead of the share prices in the secondary market, that's why announcement of second equity offering will have negative responses from the market. After the reform, with shares being all-floating, and the equity refinancing supervised by many parties, market becomes the major factor binding the refinancing behaviors of listed companies and company management have to take into consideration the interests of all shareholders, return on investment and share prices in the secondary market. Theoretically, after the reform of equity split structure, the company will have positive feedback from the market upon the announcement of seasoned equity offering and short-term performance will improve.By combining the methods of theoretic study and practical study, this thesis analyzes the factors that affect the market performance when a second equity offering is announced, and the findings are as follows: 1. market performance is poor, both before and after the reform of equity split structure, so the equity split structure is not the fundamental reason for the poor performance in the market upon announcement of seasoned equity offering; 2. company scale and relative issue scale before and after the reform of equity split structure affect the market performance in same directions: the effects are negative.