Research On The Identification And Economic Effect Of Benefit Conveying Behavior In Private Placement

Private placement is one of the important ways for my country’s listed companies to obtain development funds.It has the advantages of simple issuance procedures,low financing costs,and high financing efficiency,so it is favored by listed companies.In 2006,private placement began to enter my country.With the gradual completion of my country’s share structure reform,private placement has gradually become active in my country’s capital market.However,with the rapid development of the capital market,its inherent market flaws and regulatory loopholes have gradually emerged.Some major shareholders of listed companies use private placements to transfer interests for personal gain,which damages the legitimate rights and interests of companies and small and medium shareholders.To this end,the national regulatory authorities have increased the supervision and review of private placement,and issued the "Implementation Rules for the Non-public Issuance of Stocks by Listed Companies" on September 17,2007.With the development of the capital market,the CSRC will The "New Regulations on Refinancing" was promulgated on February 14,and the article is a research conducted under the guidance of the "New Regulations on Refinancing".This article takes iFLYTEK as the research object,firstly introduces the entire process of i FLYTEK’s private placement in 2021,and analyzes this time from several aspects such as private placement objects and relationships,date selection and price determination,subscription method,use and purpose,etc.The key issues of directional additional issuance are sorted out and analyzed to provide background material for the in-depth analysis below.Secondly,identify and judge whether there is a benefit transfer behavior of i FLYTEK in this private placement from two aspects of qualitative and quantitative analysis.In the qualitative analysis part,we mainly use logical reasoning method to deeply analyze the whole process of the private placement from the motives of the private placement,the dividend behavior in the process of the placement,and the use of funds after the placement.i FLYTEK does not have a funding gap,but it still chooses private placement;(2)In terms of dividend distribution in the private placement process,i FLYTEK cleverly chooses the timing of dividends,which not only provides subscription funds for private placement targets,but also reduces subscription costs.The impact makes it suspected of transferring benefits;(3)Analysis of the use of funds after the private placement shows that the use of funds has changed in the previous private placement.In addition,the purpose of this private placement is to supplement working capital,so it is difficult to detect changes in the use of funds.,there is a suspicion of benefit transfer.In the quantitative analysis part,the event research method is used for analysis.The results show that the announcement of private placement increases the yield of i FLYTEK and increases the wealth of major shareholders,which is conducive to the transmission of short-term interests of major shareholders.In view of the importance of the "New Refinancing Regulations" in 2020,the impact of the policy on the transfer of benefits in private placements was subsequently analyzed,focusing on the impact of changes in the pricing base date and pricing mechanism.After identifying and judging that i FLYTEK has the transfer of interests in this private placement,we began to discuss the motivation behind its transfer of interests,mainly in two aspects,one is the self-interested behavior of major shareholders,and the other is the governance of environmental loopholes.Next,I will analyze the effects of i FLYTEK’s private placement,mainly from two aspects:non-financial effects and financial effects.The conclusion is: The non-financial effects of i FLYTEK’s private placement include:(1)Investment intensity Increase;(2)encroach on the interests of minority shareholders;(3)increase the information asymmetry between major shareholders and minority shareholders.The financial effect is as follows: the capital structure of the enterprise has not been effectively improved;the development capability and operational capability have been significantly improved,the debt solvency has been improved significantly,and the profitability has not been significantly improved.Finally,the paper puts forward policy suggestions on how to avoid the transfer of interests in the private placement process:(1)continue to standardize the private placement system;(2)strengthen the disclosure of the use of private placement funds;(3)improve the supervision of private placement funds.(4)Establish a protection mechanism for small and medium shareholders;(5)Encourage strategic investors to participate in private placement.