Information Asymmetry,Objects Of Private Equity Placements And Private Placement Discount

The implementation of the Measures for the Administration of Issuance of Securities by Listed Companies has brought great benefits to the listed companies in China.The amount of fund-raising by private placement has increased explosively before the implementation of the Administrative Measures on Issuance of Securities by Listed Companies.Private placement has become the main means of financing of listed companies.Coupled with this approach compared to other financing methods more obvious advantages,more and more listed companies began to focus on private placement financing.Because the private placement is relatively low threshold,the cost is relatively small,the most important point is that it can be operational on the basis of strong,but also maintain a high value-added benefits,precisely because of the above-mentioned advantages of private placement,the more The more listed companies will be private placement as the preferred mode of financing.With the increasingly perfect market mechanism,the Commission will begin to shift the focus of work to protect the interests of investors,companies through private placement can not only attract investors to complete the company’s overall market Objectives,but also to re-adjust the company’s shareholding structure,better management of the company.For companies that are in financial difficulties,private placement can enable them to solve their debt problems in the shortest possible time,or to complete the financing.Although the domestic capital market is increasingly perfect,but far less mature foreign developed countries,in order to better protect the interests of investors and optimize the composition of investors,government departments to actively introduce overseas investors to invest in the domestic market to support the domestic capital market Of the development and expansion.Government departments have also developed support for internal control of corporate finance policies to regulate,supervise and guide the development of domestic listed companies.For the private placement discount rate is inevitable phenomenon,countries have shown that the level of discount rates and regulatory costs,information symmetry,liquidity and other factors.China’s supervision for the private placement of the price is clearly defined,under normal circumstances the discount rate of 10 percentage points,compared to 20% of foreign low half.Which has a good protection for the legitimate rights and interests of shareholders and the stability of the securities capital market.Based on the theory of information asymmetry hypothesis,principal-agent theory,corporate governance theory and liquidity compensation hypothesis,this paper investigates the impact of asymmetric information and different types of issuance objects on the rate of private placement,and studies the characteristics of the target issuers of different issuers,including the proportion of large shareholders,the proportion of shareholders before the issuance of large shareholders,the index of interest transfer,and the participation of institutional investors to the adjustment of information asymmetry and private placement discount.Through regression analysis,it can be concluded that the information asymmetry is positively correlated with the discount.When the positive institutional investors to participate in private placement of listed companies,the discount rate is low;when the negative institutional investors to participate in listed private placement,the discount rate is high.The transfer of large shareholders’ equity and the proportion of large shareholders’ subscription have a positive effect on the relationship between information asymmetry and private placement and discount.Institutional investors’ participation plays a negative role in regulating the relationship between information asymmetry and private placement discount.Based on the research conclusion,this paper puts forward the following four policy recommendations: further standardize the price of private placement,increase the restrictions;encourage institutional investors to participate in private placement;improve corporate governance,strengthen supervision of major shareholders;improve the market system,fully disclosure of private placement Information to protect the interests of external investors.In the supervision of private placement,regulators should be different types of objects to be classified supervision.This paper analyzes in detail the impact of information asymmetry and distribution objects on the discount rate of private placement,which is of significance to investors,listed companies and securities regulatory authorities.