Research On The Relationship Of Seasoned Equity Offerings And Business Performance Of Listed Companies

This paper raises listed companies'business performance before and after seasoned equity offerings as the research subject. Firstly, this paper conducted comparative analysis from two aspects:one is from the change of companies' business performance before and after seasoned equity offerings, and the other is from the disparity between companies who conducted seasoned equity offerings and the average performance of industry. The paper finds that after seasoned equity offerings, the business performance of listed companies came down to some extent.After that, this paper did a deeper analysis on the factors that influence business performance of listed companies using regression. Here, this paper uses three different models with all the samples and two kinds of seasoned equity offerings. Through regression, we find that free cash flow after seasoned equity offerings is significantly connected with business performance after seasoned equity offerings, no matter which kind of seasoned equity offerings the company chose. Other variables also have some influences on the change of business performance, but when tested, these relations are not so obvious.In the end, according to the research conclusion, this paper comes up this some policy suggestions. For example, regulate and strengthen effective government supervisory, relax the regulatory role of intermediaries, reform the regulation of equity offerings, set up comprehensive index system to check if the company has the qualification of seasoned equity offerings, increased continuous investigation on the project yield of seasoned equity offerings.