A Research On The Motives And Causes For Listed Companies' Private Placement

With the development of capital markets, listed companies need refinancing in more diverse ways. Especially in 2006, the success of share-trading reform promoted the rejuvenation of securities market, and the successively promulgating and implementing of the Measures for the Administration of Securities Issuance of Listed Companies and the Detailed Rules for the Implementation of Listed Companies' Non-Public Issuance of Stocks, so as to create favorable conditions for private placement. Meanwhile, because of private placement itself has low threshold, flexible and some other advantages that other refinancing ways don't have, these make private placement especially suitable for listed companies' refinancing in the full circulation environment. Nowadays, private placement has become the most important means and mainstream of refinancing ways. Foreign scholars began to work on the listed companies' private placement early, and had analyzed the real motives and problems exists. However domestic scholars studied it late, and there's few research on the motives and causes for listed companies' private placement. Why there are so many companies prefer using private placement for refinancing? And how do these factors make listed companies to choose private placement for refinancing? These issues are all worth being studied on. Understanding these problems is important to optimize the refinancing decision-making and will help listed companies make better use of private placement.This paper is divided into five parts; the first part is the introduction to outline the background of topics, research significance, and the viewpoints of the foreign scholars and domestic ones. The second part is the basic analysis of this paper. Three basic theories of the motives for listed companies' private placement study-MM theorem, behavioral corporate financing and risk management theory are introduced. It also enumerates the system standards about private placement in our country. Then it introduces the advantages and disadvantages and the operating mode of private placement. In the third part, based on the descriptive statistic conducted on Chinese listed companies' private placement in recent years, a theoretical analysis of factors which would make listed companies to choose private placement both from inside and outside of the company is conducted. The fourth part is mainly on empirical study. Through the selection of the latest sample data and variable indicators, a model is then built up, and the factors are analyzed in Logistic regression by using SPSS software. The empirical result shows that controlling, asymmetric information and risk can all affect the motives for listed companies' private placement, but there has some differences in the degree of the impact. In part five, a conclusion study is reached on the empirical study. According to the problems found in the analysis, policies and suggestions are made and the future research direction is also discussed.The innovation and characteristics of this paper is that, based on the basic theories of the motives for listed companies' private placement and according to the present situation of our country's listed companies, we have an in-depth analysis on the motives and causes for listed companies' private placement. So, this paper expands the scope of the studies on private placement. And in this paper, the motives and causes for listed companies are divided into tow parts:external and internal. Then the internal motives are divided into three aspects:controlling, asymmetric information and risk. This paper innovates the viewpoint of the studies on private placement, and it makes a empirical study on the internal motives with the latest sample data. This research will help listed companies for better use of private placement.