Research On The Motivation And Performance Of Introducing Non-State Strategic Investors In Private Placement

The 19 th National Congress of the Communist Party of China put forward that further promoting the reform of state-owned enterprises is an important part of improving the socialist economic system with Chinese characteristics,and encouraged enterprises to explore innovative reform models.Through the reform of mixed ownership,the state-owned enterprises can realize the diversification of ownership structure from absolute holding to relative holding,which is helpful to further improve the governance structure and optimize the allocation of property rights.As one of the first batch of pilot civil aviation enterprises,China Eastern Airlines Group is actively exploring the mixed reform mode suitable for the air transportation industry.The air transportation industry itself is a heavy asset industry,and there is a large capital demand for the purchase or lease of fixed assets and operation.Financing has become an important problem restricting the development of enterprises.Private placement has the advantages of low issuance threshold,fast financing time and high flexibility.It has become an important way of equity financing for listed enterprises.The introduction of non-state-owned strategic investors through private placement can raise funds for enterprise operation and development on the one hand,and integrate market and resources through strategic cooperation on the other.On the basis of combing the existing theories and research literature,firstly,through the three aspects of business performance,growth and risk level,this paper constructs a logistic regression model to test the motivation of listed companies to choose private placement,and finds that enterprises with poor business performance,high growth and high risk level are more likely to choose private placement for financing.Secondly,this paper analyzes the reasons of introducing non-state-owned strategic investors into China Eastern Airlines from four aspects: policy and macro-economy,industry competition situation of air transportation industry,operation and development demand of China Eastern Airlines,and "opportunity window" of high stock price.Finally,through the event study method to analyze the market reaction after the announcement of China Eastern’s private placement,the investors’ market reaction to the two private placements of China Eastern is relatively negative;combined with the use of data envelopment analysis method to compare the use efficiency of funds raised by China Eastern and the two companies in the same industry in the same year,compared with HNA holdings and Jixiang airlines in the same period,China Eastern is more efficient The long-term performance of China Eastern Airlines after private placement is measured by EVA.After the introduction of strategic investors,the long-term performance of China Eastern Airlines is good,and the EVA rises steadily.The enlightenment is as follows:(1)enterprises should carefully choose private placement for financing,investigate and analyze the income and risk of investment projects,and improve the efficiency of capital use.(2)Only by introducing strategic investors to participate in corporate governance through equity cooperation and integrating technology,resources and market,can synergy be produced to the greatest extent.(3)At the same time,regulatory authorities should strengthen supervision.