Research On Evaluation And Influence Factors Of The Listed Corporations’ Refinancing Performance In China

In 2012,A regulation which called“The decision on revising the several provisions of the listed corporation cash dividend”required that the listed companies distributed their profits in total cash would be no less than 30% of the average profits which can be allocated in recent three years.This provision had pushed the equity refinancing into sharp focus.The semi mandatory dividend policy and the requirements of ROE reflected that regulators should pay more attention to advanced supervision of the listed corporations.But on the contrary of the tight refinancing threshold was the enduring issue “boom”and the listed corporation’s performance decline after the refinancing. Was the refinancing performance index selection problem or the listed corporations’ internal supervision and the CSRC’s external supervision that should be blamed ? To get the answer,we browsed a great deal of research literature in order to do research on refinancing performance evaluation and the influence factors.We selected the data of the listed corporation which has been refinanced in 2008 and 2009 as samples and analysised the sample’s refinancing performance two yaers before and four years after starting from comparing the real performance OPA index and the traditional performance ROE index and the investment performance APR index in this time interval and the three performance index’s advantages and disadvantages. We also choosed the explanatory variables in basis of the free cash flow hypothesis, earnings management theory, the principal-agent theory and the control right benefits theory as the explained variables. Using multiple linear regression model to test each of the three performance indicators, so as to provided reference for regulators and investors. According to the empirical results we found that the refinancing performance of the listed corporations were not always decline, OPA and APR index would rebound in T+3,but compared with the listed corporations which didn’t refinance,there had a big gap and the OPA index was more stable than the the ROE index and APR index,differences were not giant between the sample groups and the matched groups, it indicated that OPA index was less affected by the listed corporations’ internal manipulation and was more suitable as refinancing threshold.Free cash flow had positive influence on refiancing performance, showed that the high refinancing threshold was uesful, the companies which screened out were high-growth. But the earning management index had significant negative effect on the ROE index, indicating that ROE index was easy to be manipulated and it’s inappropriate to be used as a measurement. After we analysisd the APR index, we can also put forward some suggestions for the investors, but it’s fluctuating graetly and affected by macroeconomic variables largest, which was also not suitable to measure the refinance comprehensive performance.Combined the research conclusion and the actual situation, we’ll give some recommendations:(1) The listed corporation should strengthen the construction of its internal supervision system and increase the accounting personnels’ regulations knowledge and professional accomplishment.(2) The supervisory department will diversify the refinancing threshold by considering using OPA instead of ROE as refinance performance indicators, as while reward the good behavior ones.(3) The investors should remain rational, pay more attention to the development of industry and the fundamental.