Research On Private Equity Placement Of Announcement Effect And Long-term Performance Of Listed Companies

In February 2017,the China securities regulatory commission issued a new regulation on refinancing,further revising the conditions for refinancing of equity to guide the reasonable financing of listed companies.China’s capital market is greatly influenced by policies.What is the reason and background of the new regulation?And how will the new rules affect listed companies and markets?This paper analyzes the above problems from both theoretical and empirical aspects.In the theoretical part,analyse the present situation of private placement in order to understand the background of new rules promulgated.Found that because of the threshold is low,it has attracted a large number of listed companies to use.But the extensive use had cause lots of problems.So regulators use window guidance,promulgated new rules to restrict private placement.The result show that the announcement of private equity placements have a positive effect of china listed companies.But after regulation gradually tightening in 2016,the average excess return in 2016 is 0.87%,have larger decline compared with other annual.And in 2017,the average excess return is 0.12%,and no significant statistically.Indicates that the announcement of private equity placements have change to negative after the new rules published.In long-term performance research,before private equity placements listed companies’ RROE has increased,but RROE fall in the next two years,in the overall trend,long-term performance is negative.And further analysis found that only project financing and asset acquisition have positive effect on long-term performance.According to new refinance rules,I choose the corresponding indicators for multiple regression analysis,the results showed that the long-term performance has a negative relation of the change of the ownership(Down),the equity refinancing of listed to raise money(Rate),financing scale(Rsize),and all positive with previous refinancing interval(the Time).The result shows that the condition of refinancing new rules can be better filtered listed companies.