The Comparative Research On Seasoned Equity Offering Efficiency Between State-owned And Private Enterprises

Nowadays, the scale of Seasoned Equity Offering (SEO) of the listed companies in China is huge, even more than the scale of Initial Public Offering (IPO). SEO has become an important way of financing to the listed companies in China. The level of SEO efficiency is not only important to the healthy and stable development of China’s capital market, but also important to the vital interests of investors. At present, the researchs of SEO are performed from the overall perspective. However, almost all the results are interpretated from the perspective of state-owned enterprises, without considering the private enterprises. Due to the different development background, there are big differences between state-owned enterprises and private enterprises, such as enterprise scale. This may lead to different SEO efficiency. Therefore this paper aims to study the SEO efficiency of state-owned enterprises and private enterprises from the perspective of the company nature.The analysis of policy evolution and present situation about SEO in China, finds that issuing additional stock has become the main way of SEO, and reflects an upward trend in the percentage of private enterprises who implement SEO. Can private enterprises use the funds raised by SEO effectively? Compared with the state-owned enterprises, can private enterprises use the funds more effectively? These problems will be the focus in the empirical research in this paper.In order to evaluate the SEO efficiency of state-owned enterprises and private enterprises objectively and comprehensively, this paper compares the evaluation method of SEO efficiency, and then employ the non-parametric data envelopment analysis (DEA) methods, which readily model multiple input and multiple output technological relationships, to measure the SEO efficiency of state-owned enterprises and private enterprises. The research firstly construsts the DEA model, then mesaures the SEO efficiency of state-owned enterprises and private enterprises who issues additional stock in 2010. The results are analysed from the aspects of effective situation, effective enterprise evaluation, invalid analysis, and invalid enterprise improvement. Finally the difference of comprehensive efficiency, pure technical efficiency and scale efficiency between state-owned enterprises and private enterprises is compared. The results show that:(1) the SEO efficiency of state-owned enterprises and private enterprises is low, which mesns that their behavior of "use" is not corresponding to their behavior of "financing"; (2) Due to the size, the scale efficiency of private enterprises is lower than that of state-owned enterprises, which leads to the comprehensive efficiency of private enterprises is lower. Based on the above conclusions, this paper analyzes the reasons of inefficient SEO from the aspects of system and corporate governance structure, and then puts forward some related suggestions.