Private Placement Of Equity And Industrial Transition

The process of developed country industrialization is be of great urgency, and the combination of production capital and finance capital is indispensable.Under, Under the efficient stock market, signaling mechanism can induce capital flow out from enterprises and industries with lower production efficiency into the ones with higher efficiency,which lead to the flow of other factors of production such as human resource and technology that finally will help to optimize the allocation of social resources. After the promulgation of "measures for the administration of securities issuance of listed companies" in 2006, private placement of listed companies has taken the place of allotment and SEO and become the main equity refinancing mode in China.How does private placement play the role of allocation of resources? How does it interfere with industrial restructuring?Whether it help to China’s industrial upgrading? Research on these issues has theoretical and practical significance.This paper focuses on the private placement and industrial restructuring, industrial structure’s upgrading in China,applying both the theoretical analysis and empirical analysis.On the one hand,this paper introduced related concepts and theories of private placement and industrial structure upgrading, analyzing the mechanism of the impact of private placement on industrial restructuring.On the other hand,this paper studies the influence of private placement on the capital allocation efficiency of the companies and the regional industral transformation by the statistics,comparison and regression method respectively based on the micro level and medium level.Finally, based on the conclusion,this paper makes some policy suggestions and configurations for further research about how to exercise the function of private placement in the industrial structure’s optimizing and upgrading.This paper draws the conclusions as follow:first of all, through the analysis of the impact of private placement on capital allocation efficiency:(1)Private placement has significant positive effect in promoting the listed company’s capital allocation efficiency; (2) Private enterprises has higher capital allocation efficiency than the state-owned enterprises.Secondly, through the analysis of the impact of private placement on regional industrial structure upgrading:(1)Private placement financing has significant positive effect on regional industrial structure upgradding;(2)The impact of private placement financing on the upgrading of industrial structure in the central region is slightly higher than the eastern region;(3)Contribution from private placement to industrial upgrading are different between the state-owned enterprises and private enterprises.