Study On The Peer Effects Of Private Equity Placement In China’s Listed Companies

With the development of world’s economy,the global trade becomes more and more prosperous in our country.In 2006,Chinese government promulgated measures for the equity issue behaviors of listed companies,which is the first and basic administrative provisions on private equity placement in our country.However,one company can’t exist without another,instead,they generally exist in groups.Because of this,scholars at home and abroad had begun to combine the individual one with their environments.With the increased attention on social group’s effects,peer effect becomes a new starting point for studying the economic and financial behaviors.Peer means the group of people or companies who had similar backgrounds and experiences,similar organizations and industries,or other similar characteristics,and peer effect means the cross effects of these individuals.This paper chooses listed companies in Shanghai and Shenzhen Stock Exchange from 2014 to 2015,which includes 2651 samples totally.Through the combination of theoretical analysis and empirical tests,this paper makes a regression test on peer effects of private equity placements of listed companies.First,this paper makes descriptive statistical and Pearson correlation analysis as the preliminary judgment.Second,this paper builds theoretical models and conducts corresponding regressions,which analyzes the existing correlation between variables.Last,dividing all the listed companies with state-owned enterprises and non-state-owned enterprises,this paper further studies the different peer effects of private equity placements in state-owned enterprises and non-state-owned enterprises.The results include the following several aspects.First,private equity placements of peer companies increased the possibility of the same choose of company itself.Also,the greater the proportion of private equity placements of peer companies,the more company itself tends to choose the same.Moreover,regardless of whether the short-term earnings of private equity placements is positive,private equity placements of peer companies play a positive role in company itself to make same choice.Second,in the positive group of short-term earnings caused by private equity placements,the greater announcement effects of private equity placements choosing by peer companies,the more companies tend to choose this way.Finally,regardless of state-owned and non-state-owned companies,the greater proportion of private equity placements of peer companies,the more company itself tends to choose the same way.However,it has special conditions to state-owned companies,which means when the short-term earnings of private equity placements is positive,the announcement effect has a significant positive correlation with private equity placements,but this correlation doesn’t exist in non-state-owned companies.