Research On The Impact Of Private Placement On Long-term Firm Performance

With the aim of achieving high-quality,efficient and diversified capital market,the 14th Five-Year Plan proposes to steadily increase the proportion of direct financing.As the main way of direct financing,private placement is favored by the market after 2006.The issuing objects of private placement are divided into major shareholders and their related parties,institutional investors and natural persons.As an important participant in private placement,institutional investors have information scale,professional knowledge and a large amount of funds,and play a key role in the issuing company.Currently,most studies focus on institutional investors as a whole,and few scholars subdivide the types of institutional investors in private placement.However,there are differences in lock-in period and shareholding independence among various institutional investors.Therefore,this thesis aims to explore the role of heterogeneous institutional investors in issuing firms and analyze their different effects on the long-term performance after private placement.After carefully reading previous studies and summarizing relevant theories,combined with the characteristics of private placement,this thesis subdivides institutional investors from the perspective of shareholding period and shareholding independence,and theoretically analyzes the impact on the long-term performance of the firm after issuing with the participation of heterogeneous institutional investors.Considering that heterogeneous institutional investors hold different attitudes towards venture capital,which will affect the investment level of firms after private placement,and then cause the fluctuation of long-term performance,this thesis introduces corporate risk-taking as an intermediary variable to explore the mechanism between them.In order to verify the research proposition,this thesis selects the data of listed firms on the main board and small and medium-sized board that have successfully issued private placement,constructs a multiple regression model to test the impact of heterogeneous institutional investors on the performance of private placement within three years,and uses the propensity score matching method(PSM)to eliminate endogeneity.This thesis finds that without subdividing institutional investors,their subscription of private placement significantly weakens the long-term performance of firms.From the perspective of heterogeneity of institutional investors,compared with financial institutional investors with a lock-in period of 12 months,strategic institutional investors with a lock-in period of 36 months have both the power and ability to govern the company and can improve long-term performance;Compared with the pressure sensitive type,the supervisory role of pressure resistant institutional investors can not be fully demonstrated,which weakens the profitability within three years after issuing.In the test of intermediary effect,this thesis uses stepwise regression method and bootstrap method respectively,and believes that corporate risk-taking plays a partial intermediary effect between heterogeneous institutional investors and long-term performance after private placement,but for institutional investors as a whole,the intermediary effect becomes blurred.Based on the empirical results,this thesis suggests that relevant departments should accurately identify the types of institutions and guide institutional investors to invest rationally.At the same time,it suggests that firms strengthen risk management,maintain an appropriate level of risk-taking and improve the utilization rate of private placement funds.