A Research On The Impact Of Ownership Structure On The Interestof Large Shareholders In Private Placement

Private placement refer to a way to issue shares to a limitednumber of specific investors(usually within ten).So far,as a way of the mainstream to solve China's enterprises financing problems in capital markets,however,there are many problems in the progress of the private placement,particularly the large holders subscribe the shares in high portion of discount.Excessive discount rate reduces the efficiency of financing,goes against the interests of the company and small shareholders,threatening the normal development of financing markets.This paper first defines the behavior of interest transmission through the wealth distribution model in private placement,and analyzes the restrictive factors of the interests of the major shareholders from the perspective of the ownership structure.Through the data sample in this paper is from Shanghai and Shenzhen A-shares market 2006-2016,we analysis of the behavior of major shareholders in private placement.By simplifying the assumptions of the wealth distribution model,this paper puts forward the theoretical model of this paper,and defines and measures the interests of the major shareholders in the process of private placement.Descriptive statistics and univariate test results show that the proportion of major shareholders has generally increased on the basis of the original after the issuance of public placement,the average discount rate of 27.28%,indicating that the major shareholders is the actual beneficiaries of private placement.Through the multiple regression analysis and stability test,we come to the conclusion that it is the tunneling that makes a higher discount.Based on the above analysis,we add the shareholder structure to the model LLSV,and improve it.From the perspective of the ownership structure,we study how the structure make the big shareholder' tunneling motives.To a certain extent,the results show“conflict of interest effect”;The power balance with shareholder structure on the tunneling motives is significant.At the same time,it is also found that different shareholders' identities affect their tunneling behaviors,especially the first shareholder and the second shareholder belong to non-state-owned enterprises,balance with shareholder structure is more significant,considering the tunneling cost is more than the other.The conclusion from this paper will be helpful to improve the private placement policy to the government.