The Studies On The Operating Performance Of Listed Companies With Seasoned Equity Offering

Since birthday, issuance is destined to be the center of the refinancing market, especially when additional oriental issue is domestically introduced. Seasoned equity offering (SEO) is booming dramatically, becoming the most significant modality of re-financing in the capital market of our country. Confronted with the frenzy of issuance, it is inevitable that the academy and the society put their mind on how issuance would affect the performance of listed companies.Considering the research papers in retrospect, one would find that foreign scholars hold different opinions on whether the issuance of listed companies is able to effectively improve their business performance. The empirical results also showed two kinds of possibilities, performance improvement and performance deterioration. In the issuance of new shares after the may happen. Most domestic research proved that SEO has a negative impact on the company’s performance, but the main samples are from before the share-split reform (2006).After the share-split reform, although some scholars have conducted empirical research, their samples and data are always not enough. When talking about research methods, it is very routine to make a simple comparison using a single characteristic or adopt a conventional multiple regression method. In addition, private placement was introduced to Chinese re-financing market since2006. The domestic scholars did little research on the performance of public issuance and private placement for listed company. The existing ones are almost entirely focusing on the short-term market performance of public issuance and private placement, other than long-term operating performance.To overcome the defects of the above methods, this paper analyzes the differences of influence between the public issuance and the private placement for the companies. And I choose the successful implementation of issuance for268listed companies during2006-2010after the share-split reform of our securities market, as the research samples. By several financial indexes and the factor analysis method. I try to construct a comprehensive function of the operating performance. After calculating the score of the listed companies each year.1try to compare and sort them before and after the issuances, to inspect the operating performance. Based on the overall samples and classified samples for different issuance types. I could draw the following conclusions:after the share-split reform, the issuance of the listed companies did gradually enhance the operating performance. In the long run, the issuance promotes the financial performance:meanwhile the private placement is more efficient than public issuance of listed companies.Combining the research results and the market status, this paper draws the following enlightenments:(1) the regulation of re-financing market should follow the principle of incentive compatibility:(2) the selective SEO of listed company should be encouraged;(3) the supervision on re-financing of the listed company shall be strengthened.