The Impact Of Project - Funded Private Placement On The Performance Of Listed Companies

Since China Securities Regulatory Commission promulgated the “Administrative Measures for Listed Companies’ Stock Issuance” in 2006,private placement which compared with allotment of shares and public offering has become another popular form of equity financing. In recent years,private placement go from strength to strength in China. The total raise funds of private placement which is 89.14% of the total amount of equity financing. From 2012 to 2014, private placement has implemented 113 times, 281 times,487 times. We can seen from data that private placement exceeded other refinancing means both in the scale and the amount of raise funds.The number of project financing private placement is accounting for 43.22% of total private placement,project financing private placement is a important category of private placement now. Scholars in our country are pay more attention to the controlling shareholders tunneling, discount on private placement and private placement motivation. Now scholars have not made any specific research about project financing private placement which have closely related to the real economy, and the research about the long term effect of private placement to companies’ performance is small. Therefore, it is theoretical and practical to do research on long term effect of project financing private placement to the companies’ performance.This article take the method of the normative research and case research,Firstly,the selection of indicators combining with the optimal capital hypothesis,the monitor hypothesis and asymmetric information theory. Secondly, we choose nearly 150 companies before two years and after four years financial data and financial ratios did descriptive statistics, the companies which was used private placement in a-share market in 2009-2010.Thirdly, in front of the case analysis,we focus on industry background analysis. And then contrast the present competitive strategy,operating conditions,business and profits with the past. Meanwhile we take the factor analysis method to study of the company’s performance. At last,three conclusions were drawn as follows:1,Under the background of prospects industry development,the company of TCL take way to project finance private placement,the original business of the company structure and the technological progress all improved,it is good for promote the steady rise of the company’s performance; 2,The analysis found that the companies’ performance decline year by year before the projects completed,and after project completion,the company’s performance has increased gradually. 3,Project financing private placement is good for change the original business of the company structure, promote the technological progress and industrial chain integration. In the long run,the project can improve the company’s performance. Based on two conclusions, we put forward three proposals: strengthen the supervision over the use of private capital,encourage in line with the company development strategy of project finance the purchase,attention consistently increase after the sustained profitability of the enterprise.