Research On The Operating Performance Of Chinese A-share Listed Companies With Seasoned Equity Offering

As Chinese capital market developed rapidly, the demand of equity financing for listed companies also grew quickly, and the way of financing has changed allotment into issuance of new shares. Since 1998,Chinese five textile listed companies have issued new shares by restructuring, more and more listed companies preference for financing by issuing new shares. Particularly during the reform of splitting share structure, the CSRC promulgated and implemented the "Regulations of issuing securities for listed companies", it laid a legal foundation for Seasoned Equity Offering of listed companies, also because Seasoned Equity Offering is simple and low cost, so more and more listed companies prefer to financing by Seasoned Equity Offering, and the stock market has set off a wave of Seasoned Equity Offering.Seasoned Equity Offering can or not brings the improvement on performance of listed companies, more and more scholars concern about the issue. But in recent years, Chinless researches on the Seasoned Equity Offering are concentrated in the pricing of Seasoned Equity Offering of new shares, Seasoned Equity Offering's announcement effect and the transportations of benefits of associated shareholders and other issues,and the research of performance on the placement are mostly normative researches, empirical researches are very little. Therefore, this research on the improvement on performance of listed companies is very significant empirical research.This paper studied on the performance of listed companies placement combing theoretical research and empirical research. In theoretical part of the paper, firstly compared Seasoned Equity Offering with other financing, analyzed the advantages and disadvantages of Seasoned Equity Offering. Secondly, described the current market situation and characteristics of placement. Again according to different methods, classified Seasoned Equity Offering, and explained the different types of placement may bring which effects to the performance of listed companies. In empirical part, we took the method of factor analyzing, selected 78 listed companies which have financing by Seasoned Equity Offering in 2008 as samples, and selected the 15 financial indicators, measured the comprehensive performance of listed companies from five aspects. In this paper, method of factor analyzing established a comprehensive scoring model to calculate three years of operating performance score. By comparing the overall performance score of this three years, we found that after the placement, the performance of listed companies has not significantly improved. Therefore, this paper revealed some problems about placement on the current market, analyzed why the performance of listed companies in China did not improve after Seasoned Equity Offering, gave some suggestions about the current policy on placement.