Research On The Motives And Benefits Of Institutional Investors Participating In The Directional Additional Placement Of Listed Companies

The latest revised rules of private placement and provisions about the reduction of shares that promulgated by SFC in 2017 once again pushed the private placement to the cusp,which is the most important equity refinancing tool for listed companies in recent years.The new regulation not only limits arbitrage space caused by pricing mechanism in the past,but also enhances the information disclosure requirements of investors when reducing shares after the restriction of restricted shares,which greatly increases the investment difficulty of the private placement market.Institutional investors are also the major subscribers of the private placement of shares of listed companies.Against this background,it is of practical significance to study the motivation and benefits of private placement for private placement,to perfect the relevant risk assessment system for institutional investors and to optimize the investment Decision to provide the path.This paper first defines the concept of institutional investors and private placement,at the same time,it studies the current situation of institutional investors and the private placement market of listed companies.Based on different classification methods,the financing amount and the average discount rate of the private placement project are compared and analyzed.At the same time,through the statistical analysis,we find that the average complete cycle of the private placement of listed companies in our country is 257 days(about eight and a half months),and the average stock price performance is about 29.28%.Secondly,using Stata software,we analyze the motivation and benefit of the institutional investors in 860 private placement of listed companies.The research shows that the motivation of institutional investors to participate in private placement is negatively correlated with the participation of major shareholders.There is a positive correlation between gains and major shareholders,and the motivation and income of the listed companies are not significantly correlated with the operating performance of listed companies.However,there is a correlation between the benefits and the purpose of the project financing.At the same time,institutional investors are motivated to participate in the bull market,when the income is low.Then by comparing the listed company’s private placement plan and the relevant distribution data,the paper screens one by one,and finally gets 3 cases,corresponding to institutional investors to subscribe for the three private placement type,and analyzes its characteristics and risk.It is found that the supplementary financing-oriented private placement projects are often linked to major asset reorganization of the company and the issuance examination period is longer with less-than-expected performance.Project financing private placement projects are diversified in terms of fund-raising purposes.In the case of capacity-building projects,there is market supply and demand Imbalanced risk.As for the acquisition of the project,there is the subject of speculation and the risk of impairment of goodwill.Financial-type private placement-oriented issuers are mostly financial institutions,subscribers and more funds,brokers and local capital-based.The main risk existing is the market fluctuations.Finally,this article puts forward relevant suggestions based on the conclusion of the study.