A Study On Wealth-transferring Of Asset-injection To Private Placement

Chinese stock market has experienced20years of development. The number ofshares issued，the scale of financing as well as the influence on national life both havea full progress. However，it did not play its due role in the regulation of nationalwealth redistribution，narrowing income gaps. Because of information asymmetry，large shareholders are often able through a variety of ways against the interests ofminority shareholders，transferring the minority shareholders’ wealth.This paper analyzes the major shareholders of non-cash assets into the listedcompany to study the behavior of wealth-transferring in the process of the privateplacement. Private placement equity division reform as a new way of financing inrecent years has been rapid development. After the implementation of the privateplacement of listed companies，listed companies may cause shareholding structure，profitability，asset quality，equity prices and other aspects of the change of control，which causes the changes in the value of wealth. And in recent years，a considerablepart of the private placement of new shares is the largest shareholder non-cash assetsto for subscription. Asset subscription activity，which itself is a large shareholder oflisted companies and related party transactions between，so subscribe assets in assetpricing has become a matter of course also more sensitive issues are also most indoubt. Asset value relative to the cash value of more uncertain，opaque，coupled withChina’s asset evaluation industry started late，by the obvious signs of governmentintervention，independence is poor，generally low level of practice，asset evaluationinstitutions vulnerable to manipulation or major shareholders and major shareholdersconspiracy the assessment is given a higher value-added rate of major shareholders infavor of minority shareholders transfer of wealth to make big profit shareholderwealth while allowing minority shareholders damaged. Secondly，when the assetinjection when combined with the private placement，in addition to the use of injectedovervalued asset value，the largest shareholder of control can also be used bymanipulating the private placement pricing to obtain private benefits，thus against theinterests of minority shareholders. Looking abroad on private placement pricing studycan be found in the private placement are present "low release" phenomenon. Privateplacement issue price of how to determine whether a reasonable basis for the pricing， pricing is fair，the high discount largest shareholder behind the existence of a transferof wealth through private placement conducted? In the private placement of listedcompanies in China high discount phenomenon as the background，one of thepurposes of this study was to investigate the private placement of listed companiespricing mechanism for the formation，and then analyzes the private placementdiscount level on the impact of major shareholder wealth transfers. This privateplacement pricing issues for promoting the theoretical research，improve the privateplacement price of listed companies to develop and protect the interests of smallinvestors has important theoretical and practical significance.This paper selected from2006to2010between China successfully implementedmajor shareholder assets subscribed private placement of158A-share listedcompanies as research samples，using standardized analytical and empirical approachto private placement asset purchase of major shareholders violations were studied.The article first introduces the research background，this paper is to propose researchquestions，organize literature，research ideas and research methods，to pave the wayfor the present study. Secondly，the institutional background of the private placement，the theoretical foundation and assets of listed companies private placement financingof subscription status summary. Then from major shareholders to subscribe the privateplacement asset valuation pricing，the pricing of a private placement of new sharestwo aspects of major shareholders to subscribe for private placement asset transfer ofwealth in the process of analysis.Main work and conclusions are as follows：(1) From the perspective of majorshareholder yield asset evaluation results were manipulated to subscribe motiveanalysis，found that when the listed company’s return on assets than the capital gainsrate for subscription time，large shareholders in order to pursue excess returns，there ismanipulation subscribe assets assessment results inflated asset values strong incentiveto subscribe. In addition，if revenues rose high enough，even for subscribed capitalgains rate is greater than the return on assets of listed companies，major shareholdersare willing to use high-quality assets subscribed private placement of new shares，onlyfor access to assets subscription revenue.(2) Data collected by hand calculationsubscription asset revaluation rate，empirical tests of the major shareholders tosubscribe for manipulating the results of the assessment of asset wealth transferbehavior.(3) Increase hair through the intrinsic value of the stock price comparisonand found that prices are generally lower than the additional intrinsic value per share， issued at a discount widespread.(4) Empirical tests carried out major shareholderwealth transfer pricing manipulation additional behavior：When a large proportion ofits previous shareholders to subscribe stake greater the difference， the majorshareholder for the transfer of wealth imposed additional discount rate will be higher.