Research On Equity Refinancing And Performance Of Baotou Steel

Market economy is a kind of capital-driven economy,whether the enterprise funds is sufficient or not directly determines the operation and development of the enterprise.If the enterprise can obtain stable resources,it can ensure the enterprise a healthy development environment.At the same time,the using effect of the enterprise after obtaining the funds will also be reflected in the financial affairs of the enterprise.Since the initial public offering funds,most listed companies in China are more inclined to obtain the subsequent development funds through equity refinancing methods such as issuance cost,rights issue,convertible bonds and so on.Thus the effect of equity refinancing of listed companies has naturally become the concern of researchers.By the analysis of four refinancing behaviors occurred since 2007 and the comparative analysis of financial performance before and after equity refinancing of Baotou Iron and Steel Co.,Ltd.,this article found that the change of performance of shares in Baotou Iron and Steel Company is negative after the refinancing.On this basis,it is found that the main reasons for the low performance are the unreasonable ownership structure,the imperfect governance mechanism,the transitional preference for equity financing and the imperfect market supervision mechanism.Besides,this paper gives some suggestions on the causes of low performance,which provides some reference for other listed companies to improve their financial performance when they carry out equity refinancing.