An Empirical Research On The Objects Of Directed Additional Issuance On The Impact Of Investment Efficiency

Under the background of the equity division reform, if the listed companies want to develop, they must take effective measures to equity refinancing. Following the public issuance、allotment, directed additional issuance has been a mainstream mode of financing, which has indeed relieve the funds pressure of listed companies in the expansion process to a certain extent. On the other hand, we should pay attention to that when the additional objects are the major shareholders or the related shareholders, they always by the way of non-cash assets to subscript shares, while these non-cash has low-quality. Compared to the major shareholders or related shareholders, the issuance to institutional investors can raise more cash to be used, and the introduction of institutional investors with professional analysis capability and corporate governance, which can effectively enhance the market value of listed companies. Therefore, whether the problem of insufficient investment in listed companies can be effectively alleviated after the private placement. Compared with the major shareholders or related shareholders and hybrid issuance, whether the problem of the lack of invest can be more effective solved when we issue to the institutional investors.Taking the case to introduce the topic, based on three cases of different objects of directed additional issuance to introduce directed additional issuance on the impact of investment efficiency. Zhejiang Wanfeng Auto wheel Co., Ltd issued shares to its controlling shareholder and other shareholders in 2011; Shanghai Yanhua Smartech Group Co., Ltd issued shares to institutional investors; Zhejiang NHU Co., Ltd issued shares to the largest shareholder and strategic investor by way of non-public offering in 2010.Through analyze the invest of the directed additional issuance the three years before and three years later, then introduce the topic of directed additional issuance on the impact of investment efficiency.Collecting the data about the listed companies in the SME board from 2006 to 2014 through GTA database and the huge influx of information official website. Taking the 97 corporations that made directed additional issuance during 2009-2011 as the research objects. Taking Richardson (2006) model as a tool to measure the investment efficiency, get the data of 97 companies that made directed additional issuance from 2006-2014. Taking the way of comprehensive qualitative and quantitative, by the way of empirical analysis, mainly descriptive statistics, multicollinearity test, regression analysis and robust test methods, and analyze whether the lack of invest of listed companies that made directed additional issuance can be effectively alleviated and different types of private placement on the impact of investment efficiency. The results show that its investment efficiency can produce significant changes after the placement of each company’s; comparing with the major shareholder or related shareholders and hybrid issuance, the issuance to institutional investors can more effectively alleviate the shortage of invest of the listed companies in the SME board.This shows that the directed additional issuance can alleviate the financial pressure on the new project of listed companies to some extent, which can also enhance the construction industry chain, achieve the development of vertical integration,achieve optimal allocation of resources; In addition, due to the factors of the lock-up period, whether major shareholders to subscribe for new shares or institutional investors have the power to monitor the behavior of management actively, strengthening the investment on new projects to improve the value of listed companies. This conclusion can also explain why the listed companies through private placement to get the funds, it is because the cost of private placement is lower, the relevant requirements are relatively low. So it is possible to raise more funds for the needs of capital expansion, then improve the listed company’s investment efficiency, thereby increasing the value of the listed companies. But among the three types of directed additional issuance, the listed companies in the process of the directed additional issuance to institutional investors is more fair and objective, therefore it can raise more funds, in addition, by introducing institutional investors of professional analysis capability and corporate governance can effectively enhance the company’s governance.In this paper, I research the issue about the directed additional issuance and investment efficiency, duing to help the facilitate stakeholders to make the right investment decisions, thus it can effectively promote the optimization of social resources, besides, it can help the relevant institutions to make effective measures to guide the listed companies to raise funds and investment behavior, improve scientific fund-raising behavior, which also has practical significance to enhance the performance of the company.