The Empirical Research On Seasoned Equity Offering Market Timing Of Listed Companies In China

It is a classic topic about how companies refinance in financial management.The major source to raise funds in listed companies is internal retained earnings and external financing, especially equity financing as a vital means of financing that has an universal concern by scholars.At present, the relevent research about equity refinancing in listed companies is mainly based on the theoretical framework of traditional finance.The paper from the perspective of behavioral finance,combined with the specific situations of China’s securities market, is about the study on market timing of equity refinancing in China.Since2005the implementation of the share reformation in China, non-tradable shares on the stock market begin to circulate in order to achieve the overall circulation of shares, which is of great significance for China’s capital market. Based on the above, this article is combined with the actual situation of China’s listed companies after the reform of China’s capital market and equity refinancing issues were discussed and studied.In this paper, equity refinancing of listed companies is the main line. From the perspective of market timing theory of listed companies in China, the author analysis equity refinancing decision.Based on the Baker&Wurgler (2002) model,the author use the empirical data of A-share market for equity financing of listed companies.The first regression analysis is based on the total sample,and then the second regression is based on the grouping samples.The author consider the effect of refinancing policy regulatory in the model.Based on the above,the author do a further examination on the capital structure of listed companies which have a market timing of equity refinance.The empirical results indicate that listed companies will choose equity financing when the price is overvalued;when the stock price is undervalued, they will repurchase stock.When the stock price is overvalued, the listed company choose equity refinancing which will cause a lower asset-liability ratio;when the stock price is underestimated, the listed company will repurchase shares resulting higher debt ratio. In addition, the empirical results also imply that market timing of equity refinancing is not only based on the market timing of stock price but also the timing of regulatory policy financing.In this paper, the author combines theoretical analysis with empirical approach and uses2006-2012A-share listed companies as samples to establish multiple regression equation,discussing the existence of market timing and equity refinancing market timing on the impact of capital structure after the implementation of the share structure reform of listed companies.This paper is divided into the following six sections:The first part is the introduction, the article introduces the research background, significance, research frameworks and methodologies as well as innovation of papers.The second part is the literature review, the article sort out the equity refinancing existence of market timing and the impact on the company’s capital structure from the domestic and foreign literature review.Then,the paper summarize the existing literature.The third part is the related theory and the refinancing of listed companies Analysis. First, the text related concepts defined in detail the theoretical basis for the hypothesis put forward later to pave the way; Then for listed companies in China’s equity refinancing general description of the current situation, and the refinancing of listed companies on China’s policy environment and the way analysis of its evolution.The fourth part of the study design, based on theoretical assumptions made article, select the explanatory variables, the explanatory variables and control variables, and each variable is defined and measured in detail. On this basis, a regression model and describes the data sources and selection of samples for later empirical test to prepare.The fifth part empirical tests, including descriptive statistics, correlation analysis and multiple regression analysis, based on the total sample, sample grouping two angles, obtained empirical results and analyze them, and thus the previously proposed hypotheses. Part VI Conclusions and Suggestions evidence, first of all the foregoing summary of empirical results, based on this proposed for the refinancing of listed companies that act related countermeasures and suggestions, and finally explain the limitations of this study and future research directions.The main innovation of this paper is mainly reflected in two points.On the one hand, from the perspective of behavioral finance research, which is closer to the capital markets of the factual circumstances, the paper expands the research perspective. The paper can explain what has happened in the stock market and make a reasonable explanation.On the other hand, the research is not limited to foreign existing research models, taking into account the specific context in China’s securities market. From the actual capital market situation in China, the research is about the market timing behavior of equity refinance in listed companies.