Research On The Motivation And Effect Of Private Placement Of Muyuan Shares

In May 2006,the issuance of the Measures for the Administration of Securities Issuance of Listed Companies officially promoted the private placement to major companies and became a way of equity refinancing of listed companies.This marks our country directionally added the safeguard that had law.Due to the advantages of low entry threshold,relatively simple procedures,less restrictions on financing scale and high financing efficiency,private placement in China has become the most popular financing method in just a few years.However,at the beginning of development,China’s private placement of relevant laws and regulations are not perfect,supervision is also not in place,so there are some problems.Such as the listed company will consider as a means of arbitrage,the big shareholders interests transmission,and so on and so forth,because the inner motivation of directional issuance is different,so the effect after the issuance is endless also and same,relevant departments from the purchase of listed companies in the process of summing up experience,introduced in2006-2020 times consider relevant laws and regulations,Hope from the source to reduce the possibility of interest delivery through directional additional issuance.In this context,this paper starts from the motivation of listed companies to choose private placement,explores the purpose of the issuer to choose private placement,and studies the effect of enterprises after private placement in combination with the purpose,to see the degree of matching between them,which will be conducive to the company to make more reasonable use of this way of equity refinancing.It has certain research significance for improving the company’s performance and promoting the sustainable development of enterprises,and at the same time,it can also provide reference and basis for the supervision department to formulate and manage relevant systems of private placement.First of all,this paper starts from the theory of private placement,Outlines the concept,characteristics and financing status of private placement,and highlights the advantages of private placement by comparing with other ways of refinancing.Secondly,select the Muyuan private placement as a case to analyze,combined with the industry development and industry financing status analysis of Muyuan shares three private placement motivation and the announcement effect,financial effect and non-financial effect after the additional issue.The following conclusions are drawn: the first two private placement of Mukhara shares played a dual effect,in the private placement to raise funds while successfully launched the employee stock ownership plan,played a certain equity incentive effect.The overall market reaction of the private placement of Mukhara shares is positive,which plays the role of signal transmission.The capital structure of Muyuan shares has been optimized by the use of private placement to raise funds,and its solvency has been further improved,reducing financial risks.Profitability increased with expansion projects and the release of capacity.The development of ESOP makes the human capital structure of the company more reasonable,and also constantly increases the intensity of scientific research.But after the private placement of Mukhara shares,these good effects also exist in the possibility of interest delivery.Finally,this paper puts forward some suggestions from the perspective of listed companies,medium and small investors and regulatory authorities,hoping to provide certain thinking value for stakeholders.