Research On The Motivation And Economic Consequences Of Z Airline's Private Placement

Financing activity is an important financial activity for enterprises.After decades of development,China's capital market has produced many different ways of financing,and directional issuance is one of them.Oriented issuance has a history of more than 100 years in foreign countries,and it has been quite perfect and mature.However,in China,the time of the occurrence of directed issuance is not long.The Regulations on the Management of Securities Issuance of Listed Companies were promulgated and implemented in 2006,which regulated the conditions and procedures of directional additional issuance,so that this refinancing method could really come into being.After more than ten years of development,private placement has become the most important means of equity financing of listed companies.Naturally,more and more attention has been paid to the related research of private placement.This paper chooses the directional issuance event completed by Z Airlines from 2015 to 2016 as the research object,and analyses the motivation of Z Airlines to implement this directional issuance from the market environment,industry environment,corporate strategy,corporate finance and other perspectives.On the other hand,this paper uses the methods of event study,financial index analysis and economic value-added analysis to study the economic consequences of Z airline's private placement.The conclusion of this paper is that the directional issuance has brought positive economic consequences for the company as a whole,but it also reduces the profitability and operational ability of the company,and increases the risks faced by the company.It requires the company managers to treat it carefully,formulate reasonable financing and capital utilization programs,and really improve the market value of the company.At the end of this paper,some suggestions are put forward for the management of Z Airlines.It also provides reference for future companies in decision-making,and has certain practical significance.In addition,this paper fills in the gaps in the case study of directional additional issuance,and has certain theoretical significance.