Private Placement Of Listed Companies In The Transfer Of Benefits

After the split share structure reform, private placement of the operating process is simple, low barriers to entry as well as issuance costs and other advantages, widely recognized by the market and become the main mode of China’s capital market, equity refinancing. However, popular in the capital market refinancing our unique capital markets soil, the breeding ground for the transfer of benefits has been much criticized. China’s private placement market, why would a delivery tool of the interests of small shareholders to large shareholders? Way of transfer of benefits? Why are these channels in a private placement of the implementation process to achieve the transfer of benefits? In this paper, these three issues, the theoretical discussions and case studies.This essay is organized as follows:Chapter Ⅰ:Introduction. Firstly, described the background and significance of this research, laid the foundation for the rest of this study. Then stated the idea of research, research methods, as well as define the private placement of the concept with the transfer of benefits.Chapter Ⅱ:literature review. The literature on private placement combing, combing the private placement of foreign literature, foreign literature, mainly through the discount description of the interests of transportation problems, the hypothesis of the Controlling Shareholder, investors risk compensation hypothesis five hypotheses to explain these discount phenomenon. Domestic literature for the private placement of interests in the transportation of a summary, can be divided into three types:large shareholders to subscribe for private placement of new shares to the behavior of the injection of assets at high prices at unreasonably low prices on the private placement of subscription object, directional additional cash after the implementation of the behavior. Cash behavior is divided into two categories:the first category, the private placement Subscriber implementation of the behavior of the holdings of shares in private placement; the second class, completed the private placement of subscription behavior of listed companies high dividend behavior.Chapter III:the private placement in the interests of theoretical analysis of transportation problems. First analysis of our private placement market, the interests of these three transportation of theoretical and practical roots, pointing out that our unique capital markets of soil nutrients structural imbalance is caused by private placement to become the fundamental source of the interests of the pipeline, on the one hand, China’s Listed Companies absolute control over listed companies, on the other hand our private placement market, lack of supervisory experience, information disclosure system is imperfect, which produced severe information asymmetry between large shareholders and small shareholders and principal-agent problem. Followed with the redistribution of wealth, the model explained with the theoretical analysis of these three ways why the transfer of benefits in the private placement market.Chapter IV:case studies. This case part of the review of the implementation process of the three ways to verify the three ways the case of transfer of benefits in the private placement, respectively, based on a private placement case Commodity City to verify that our private placement of the implementation process unreasonable low-cost private placement of subscription object behavior to achieve the transfer of benefits; Yardley energy private placement case verified private placement of large shareholders in the implementation process to inject assets at high prices to subscribe directional behavior of the issuance of new shares to achieve the transfer of benefits; in cash behavior in the case of private placement Zongshen verify the holdings of shares to achieve the transfer of benefits, Chihong Zinc and Germanium case of private placement to verify the high dividend behavior to achieve the transfer of benefits.Chapter V:conclusions, recommendations and outlook. This article is recommended in China directed additional market benefits from three angles to solve the transportation problem:First, standardize the issue price system, the establishment of the constraint mechanism, strike hard in order to reduce the issue price and the behavior of stock price manipulation; Second, strengthen the asset injection quality assessment to ensure the authenticity and reliability of the assessment of the assets; third, to improve corporate governance, the constraints of self-serving acts of major shareholders, reducing conflicts of interest between shareholders.The contribution of this article:Verify the theoretical analysis of the way three ways to achieve the transfer of benefits in the private placement, presented in the form of case studies of these three ways, laid the foundation for our directional follow-up study of additional interests in transportation, but also help regulators for the specification of the behavior of private placement.The lack of this article:Listed companies to the private placement of the way in the transfer of benefits classified into three listed companies directed issuance of the interests of the transportation of to be further explored. Due to limited space, no analysis, medium-and long-term operating results of these listed companies can’t determine whether it would be small and medium shareholders resulting in a more lasting benefits against.