An Empirical Study On The Impact Of Private Placement On Corporate Value

With the increase in the number of listed companies in the country at present,enterprises will continue to raise funds through the issuance of shares according to their own needs and capital operation after the IPO.From the current global market situation,listed companies through the issuance of new shares for refinancing methods are the following two ways:allotment and additional shares.Additional shares,generally divided into private placement and public issuance.For private placement,in essence,is a financing method that issued a non-public offering of shares to some special investors or groups.Due to the particularity of private placement,its impact on the value of the enterprise has been the hot topic of domestic and foreign research all the time.Nowadays,foreign research has already had some formed theory on the behavior of private placement,but the domestic research in this area is still relatively scarce.Then,whether it will have a significant impact on the value of the domestic enterprises after the private placement,whether it will have a significant impact on their own value due to private placement caused by internal ownership structure changes,is the focus of this paper.In this paper,we use the latest data-the 2014 listed companies that completed the private placement as the object of study,filter and improve the models used by previous research on the impact of corporate value,use factor analysis to study the impact on corporate value.We select 8 financial indicators combined with 4 common factors to quantify the value of the firm,and the ranking of the firm scores makes the research results more simple and clear.And the multiple regression model is used to study the influence of the change of ownership structure on the value of the enterprise with the introduction of strategic investor indicators.Using the above two methods to comprehensively study the specific impact of the issuance of listed companies in China and the change of ownership structure on the value of the enterprise.And get the conclusion of this paper as follows:Enterprises in the completion of private placement have a significant role in upgrading the short-term value of the enterprise,but have no significant role in upgrading its own long-term value.When the original shareholders of the enterprise to participate in the private placement,the long-term performance the company completed the private placement will be significantly increased,and the introduction of strategic investors has no significant positive effect on the long-term value of the enterprise.The research results of this paper can make some contribution to the research of private capital market,while the domestic research in this field is scarce.This paper will combine the private placement and the ownership structure of the enterprise,and analyze the status of the domestic in the current stage,and finally put forward the corresponding policy recommendations to standardize the domestic listed companies.