Research On The Implementation Effect Of Private Placement Of FT Company

Private placement was originally popular in the capital markets of developed countries such as the United Kingdom and the United States in the 1990 s,and is a special way for enterprises to raise funds in the capital market.Domestic directional add-issuance appeared in 2006,and has experienced three stages of outbreak,contraction and recovery.In 2016 and 2017,China issued a series of policies to regulate the capital market in response to the chaotic situation of the capital market,and gradually tightened the financing methods of private placement of enterprises.In2020,China issued new policies,which tend to loosen restrictions on private placement of companies.As an important means of financing,private placement is favored by major shareholders of listed companies because of its low cost and simple procedures.More and more listed companies try to finance through private placement.FT company is the most comprehensive and largest commercial automobile enterprise in China.In order to optimize the company’s product structure,improve the company’s research and development ability,supplement the company’s working capital and enhance the company’s business performance,we issued and implemented four plans of private placement from 2008 to 2015,and all of them were cash subscription.Paper to FT companies as the research object,the purpose of the private placement,implementation process and effect were analyzed,and from 2008 to 2020 FT of the company’s financial data,using event study method,index analysis and efficacy coefficient method,respectively from the company’s short-term stock price changes,research and development ability,the operating performance analysis etc.,The results show that the private placement of FT company optimizes the product structure,improves the research and development ability and supplements the working capital,but there are some problems such as long payback period and unreasonable capital structure.Efficacy coefficient analysis shows that business performance is influenced by factors such as macroeconomic and policy laws and regulations,comparable to the target company and the entire automotive industry overall operating performance is on the decline,the FT companies multiple directional secondary supplement the company’s cash flow at the same time,relative industry development trend,also to a certain extent,to improve the company’s operating performance.It is recommended that auto enterprises should increase investment in research and development to build their core competitiveness;take into account the optimization of the company’s debt structure,prevent financial risks and pay attention to the sustainable development of the company;rationally plan the private placement of investment projects,reduce the payback period,and accelerate the improvement of the company’s operating performance.