The Performance Evaluation Of X Company's Equity Refinancing

Since the establishment of capital market in China in the early 1990s,with the development of market economy and the continuous deepening of economic system reform,equity refinancing plays an important role in the financing of listed companies in China.Equity refinancing can raise sufficient funds for the enterprise from the capital market,which is intended to play a promoting role for the follow-up development and growth of the enterprise.However,at present,the performance of equity refinancing is low in China's listed companies.Therefore,it is not only theoretically meaningful to evaluate the performance of listed companies' equity refinancing,but also has practical application value.This paper evaluates the equity refinancing performance of listed companies through a case,and further analysis of the evaluation results,hoping to improve the equity refinancing performance of listed companies and perfect the resource allocation function of China's capital market.First of all,this paper summarizes the research literature and theory of equity refinancing at home and abroad,and then constructs a scientific and reasonable performance evaluation model of equity refinancing by using factor analysis method,and use this model to carry on the appraisal to the X company which carries on the stock refinancing behavior several times.In evaluating the performance of equity refinancing in the case,this paper mainly compares the two aspects:The first is the vertical comparison of the comprehensive performance scores before and after the equity refinancing of the X company;the second is the horizontal comparison of the change of the performance of the X company and the change of the average performance of the industry in the same period.Through the above two aspects of comparison,evaluation of X company equity refinancing performance is low.Furthermore,based on the evaluation result of X company's equity refinancing performance,this paper concretely analyzes the low performance of X company's equity refinancing mainly because of the inefficient use of raised funds,the encroachment of large shareholder and the imperfect corporate governance.And make reasonable suggestions:X company to strengthen investment project pre-analysis,the establishment of a scientific investment decision-making mechanism;improve the decision-making system of related party transactions;optimize the ownership structure and improve corporate governance.Finally,based on the research results of the case companies,this paper summarizes the useful revelations for the listed companies and the regulators,and introduces the shortcomings and prospects of this paper.