The Change Of Listed Companies’ Performance After Equity Refinancing And The Research Of Influencing Factors

With the continuous development of China’s securities market,the scale of theequity refinancing is constantly rising. However,more attention is put on the questionsuch as whether the capital which was raised by the equity refinancing of the publiccompany could be in the right way,and how the corporate business performance afterthe equity refinancing.This paper tries to adopt the combination theory of the theoryand demonstration to analyze changes of the corporate business performance betweenbefore and after the equity refinancing and influencing factors.Based on review and evaluation of the changes of the corporate businessperformance after the equity refinancing at home and abroad,this paper used theownership concentration theory,free cash flow theory and agency cost theory as thetheory foundation to study the reasons of the decling of the performance after theequity refinancing.And then gives a summary of the equity refinancing currentsituation at home and wity the descriptive statistical analysis to describe the changesof the corporate business performance before and after the equity refinancing.Finally,the change of operation performance of listed companies in three years afterreckoning refinancing by studying the issuance of the China’s A-share and placementof listed companies in2008-2010China is studied. And analyze the trends ofoperation performance after share refinancing by describing statistics with multiplelinear regression method. It was found that the higher the degree of sharesconcentration listed companies have before they implement shares financing, thebetter they perform in running after equity refinancing,and the more free cash flow thelisted company have before re-equity financing, the worse they perform in runningafter equity refinancing. And if the largest shareholder is state-owned enterprises, theywill have very bad performance in running after refinancing.Analyzed the deep cause of downturn of operation performance after sharesrefinancing in this thesis by combining with environment and own characteristics oflisted companies in China’s stock market. And proposed the policy suggests for listedcompany to elevate their achivevments after financing,which is beneficial to improve and standardize the behavior of listed companies in our nation,and promote thedevelopment of the refinancing market.