Secondary Equity Offering Choice For Listed Companies

After the reform of non-tradable shares in 2005, the Chinese equity refinancing market gradually formed the situation of giving priority to the purchase, public offering, public offering, convertible bonds becomes the complementary pattern. In a word, the purchase became the most important equity refinancing way of listed companies.Firstly, this article did empirical analysis to study why listed companies prefer purchase from the view of corporate value maximization, using event study method. From the study, the article got one reason:Compared with public offering and public offering, the purchase is the best way to promote the value of the company. Then, this article again did empirical analysis, using logistic model. This part talks about how to choose the way of refinancing in our country, from the view of information asymmetry, equity structure, profitability and capital structure. In this part, the article draw a conclusion that the company size, the proportion of tradable shares, the return on equity, and the first shareholder’s stake has a significant impact on the choice of equity refinancing way.