Research On The Financing Decision Of Guanghui Energy "Transferring Preferred Shares To Increase Common Shares"

As a special financing tool with the characteristics of stocks and bonds,preferred stocks are highly concerned by Western capital markets.The “Preference Share Management Measures” is issued by the China Securities Regulatory Commission.The release date is 2014,and several A-share listed companies have successively Preference shares were issued.As the first listed company to propose a preferred stock issuance plan,Guanghui Energy Company finally terminated the plan after the approval of the issuance deadline,and then launched a private placement of common stock financing plan.The financing method has received much attention from the market and is worthy of theoretical circles.the study.This paper not only uses the financing decision theory,but also uses the capital structure theory.The first is to introduce the preferred stock plan but terminate the plan of Guanghui Energy as the research object,mainly from the financial perspective to abandon the issue of preferred stocks and turn to orientation.Case analysis of the financing decision-making problem of issuing additional shares,focusing on comparing the impact of the two financing schemes on the company's financial status and operating results,revealing the deep-seated reasons for changing financing decisions from the financial,strategic and policy levels,for other listings The company provides some reference and guidance on the decision-making issues of preferred stock financing and private placement of common stock financing.The main conclusions of this study are as follows: First,Guanghui Energy changed its previous preference stock financing and began to become a private placement of common stock financing.The motivation for the company to change its financing plan mainly comes from financial considerations,namely,the issuance of common stock financing.The lower cost of capital is beneficial to improve the company's capital structure and optimize financial indicators.At the same time,the issuance of common stock financing is also the need for the company to introduce strategic investors.Second,the preferred stock financing method is not suitable for each listed company of A shares.The company should consider the profit level and capital structure to choose the suitable method for its own exhibition.