A Study On The Motivation And Economic Consequences Of Private Placement With High Stock Dividends

Private placement is an important way of refinancing equity in China’s capital market.Compared with the public issue of shares,the issue of targeted financing has a short cycle,low cost,no profit requirements,targeted,widely used by listed companies for project financing,mergers and acquisitions to expand the scale of equity,optimize the capital structure,improve the financial situation of the purpose."High stock dividend" refers to a relatively high proportion to increase equity,as a corporate return to investors an important way in recent years has become the market darling.Through the observation of China’s capital market: "High stock dividend" is often accompanied by the behavior of the private placement,whether there is an intrinsic relationship between the two worthy of in-depth exploration.This article chooses Tongling nonferrous as the case company,originates from the Tongling nonferrous metal in 2015 to carry on "the high sending turn" and in "the high sends the turn" to carry on the private placement issue separately,its time skillful,the intensity is big,is worth digging.Firstly,the article analyzes the current situation and financial situation of Tongling nonferrous metals market,as a result of the non-ferrous metal industry slipped into a downturn and the safety and environmental costs of the large increase,resulting in decline in corporate performance,profit worries,the need for capital chain replenishment;second,Tongling nonferrous "high stock dividend" case and two of directional additional cases for detailed carding,This paper attempts to explore the internal relationship between two directional additional placements and "high stock dividend" : taking directional additional issue as the starting point of research,this paper probes into the deep purpose of "high sending and turning" of Tongling nonferrous in the case of profit loss: On the one hand,for the first time in 2014 to participate in the directional issuance of institutions to seek benefits,help them flee,profit for Ann,at the same time,the interests of transport is suspected;on the other hand,for the second directional secondary issue paving,to release good news,market value management,stability of the purpose of the stock price,so that the second directional secondary issue smoothly,to help enterprises quickly raise large sums of money,so that enterprises in time to get rid of financial difficulties.Through the case company research shows: Tongling nonferrous exist in the use of "high stock dividend policy,to promote stock trading and circulation,to help the institutions involved in the directional issuance of additional interests,at the same time,"high stock dividend" with two of directional additional successful implementation,the company used to raise funds to acquire Lujiang mining,copper Crown smelting business assets,Upgrading copper smelting technology,repayment of bank loans,replenishment of liquidity,make the company’s financial plight improved,capital strength enhancement,capital structure optimization,operating ability to improve,smelting technology has been upgraded,competitive advantage is obvious,promote the long-term development of the company.All things should be rational to see,as the capital market for "high stock dividend" and cash subscription set to increase the share of the blind pursuit of the phenomenon,therefore,the paper puts forward to actively use the "high stock dividend" and directional additional to the enterprise to bring vitality,but also to remind the majority of small and medium-sized investors to prevent the "high stock dividend" of interest delivery behavior.It is hoped that the research of this paper can be used for reference in perfecting China’s capital market "high stock dividend" and directional additional system.