The Stakeholders’ Risk Analysis Base On Private Placements Of Equity

Private placement, rights offering, public offering and convertible bond are popular refinancing methods in China. Especially private placement has become the most important financing mode of listed company. Contrast to other refinancing modes, private placement shows lots of advantages. For example, it need less requirements of issue, less procedure, less cost and less time. But there are many problems emerging as more and more listed companies to carry out private placement. Because relational legal is not perfect, how to improve the relevant laws and regulations are very tight. Private placement is becoming more and more popular in recent years, but little research of private placement lead to chaos in the market. In the background, I hope standing the shoulders of predecessors to analysis risk from all aspects. Of course, I also hope supervisors can recognize problems’seriousness and continuously promote relevant laws. In order to encourage long-term healthy development of capital market.The article include six parts as follows:Chapter1:Introduction. It describe the paper’s background, purpose. significance, thinking, methods, innovation and shortage.Chapter2:Literature review. It includes foreign literature and domestic literature. I will classify them for the foundation of research in later.Chapter3:Mechanism and recent situation of private placement. It introduces concept, function, advantages and shortage of private placement. I will analyze private placement’s status in the current capital market.Chapter4:Private placement’s analysis of risk. I will have some innovation of relational research in this part. It have five aspects:the largest shareholder, minority shareholder, investor, manager, intermediaries. This is the core innovation of theory.Chapter5:Analysis of case. I will select typical case to analyze the company’s risk of private placement. The first half of part will introduce company of case and overview of private placement. The later part I will analyze the private placement’ risk of company. This chapter and chapter4are the core of paper.Chapter6:Conclusions and recommendations. This part main describe conclusions of investigation and propose some advises. I hope them will be useful to prefect system of private placement.Because my level and time is limited, The paper creation maybe logic not clear. The descriptions may be not comprehensive. The analysis part may be text too much, statistics too little, lacking of evidence and so on.