Short-term Stock Price Effect Of The Announcement Of PV Commpanies’ Targeted Issuance Proposals

The emerging industries represented by photovoltaic enterprises are generally capital-intensive and technology-intensive industries with fast development speed and wide development space,and the market requires high R&D capability and project investment capability for such enterprises.However,due to the long payback period of investment projects,and the great demand for capital in the process of development of such enterprises,there are often problems such as tight liquidity,shortage of project investment and R&D funds in the process of operation.In order to solve the capital problem,most of the listed photovoltaic enterprises will choose to refinance to meet the future business development of the enterprise’s capital needs,of which the number and frequency of targeted issuance is the highest.The size of the funds raised by the targeted issuance is very large,and the use of large-scale funds can play a crucial role in the future development of the enterprise.The announcement of the enterprise’s targeted issuance plan can deliver a series of information to the market,which is an important channel for market investors to understand the current operating conditions and future development prospects of the enterprise,and can reduce the information asymmetry between market investors and PV enterprises.According to the efficient market hypothesis,the stock price can reflect all the information in the market.Therefore,the stock price fluctuation status after the announcement of different targeted issuance proposals reflects the market’s judgment on the current operating conditions of enterprises and the future development prospects of the industry,which has an important guiding role for the future business strategies and development directions of enterprises.This paper mainly adopts a research method combining theoretical and empirical research,and qualitative and quantitative research.After combing through the announcements of PV companies’ pre-proposal for directed issue,it is found that the pre-proposal announcements generally reveal information on the use of fund raising,issue targets,issue size,issue price,etc.As the Securities and Futures Commission has made regulations on the issue price of targeted issuance of listed companies,there is little difference in the issue price information between PV companies.After statistics,it can be found that the issue scale ratio between PV enterprises is less different;the issue object is mainly divided into two categories,including the directional issue with the participation of major shareholders with related transactions and the directional issue with the participation of institutional investors without related transactions;the use of fund-raising mainly includes two types of financial financing and strategic financing,in which the strategic financing type of directional issue includes project investment and R&D,which in turn involves the PV This in turn involves different strategic layouts of PV companies.Therefore,the main research content of this paper is the share price effect of the overall sample of PV companies,the share price effect of different issuance targets,different fundraising purposes,and the share price effect of different strategic layouts.The empirical research mainly adopts event study method,descriptive statistics,test analysis,and logistic regression for the sample data.According to the empirical results of this paper,the following conclusions can be drawn:there is a significant positive short-term stock price effect of PV companies around the date of announcement of the proposed targeted issuance,the short-term stock price effect of the announcement of the proposed targeted issuance with strategic financing is significantly higher than that of the financial financing,the short-term stock price effect of the announcement of the proposed targeted issuance with the participation of major shareholders with connected transactions is not significantly different from the stock price effect of the participation of institutional investors without connected transactions The share price effect of the announcement of the announcement of the proposed targeted issuance is significantly different from the share price effect of the announcement of the announcement of the proposed targeted issuance with the participation of institutional investors without related transactions.The final part of the paper interprets the findings and provides insights at the firm level and investor level,respectively.