Shuanghui Development Major Shareholder Asset Injection Oriented Economy Consequences Of Research

Listed companies mainly carry out equity refinancing in three ways: allotment,additional issuance and issuance of convertible bonds.Private placement is favored by many listed companies due to its unique advantages such as low issuance price,few restrictions,and short review period.According to the difference in issuance motives,private placements can be classified into four types: project financing,asset injection,mergers and acquisitions,and introduction of strategic investors.Among them,asset injection type private placement means that when the major shareholder injects assets into the listed company,the listed company issues a considerable amount of stock to the major shareholder as a consideration,its essence can be regarded as the realization of business combination under the same control or the realization of business combination not under the same control.If the major shareholder injects high-quality assets that are closely related to the main business of the listed company to the listed company,it will not only help improve the group’s internal industrial layout and realize the integration of the entire industry chain,but also reduce the scale of related transactions and competition in the same industry,thereby reducing the operating costs of listed companies and enhancing the independence of their operations.Based on the background that the meat processing industry is in urgent need of transformation and upgrading,this thesis takes Shuanghui development,a leading enterprise in the meat processing industry as an example,to study the economic consequences of this major shareholder’s asset-injected private placement.Based on the existing theoretical basis,starting from the introduction of the basic situation of Shuanghui Development’s major shareholder asset-injected private placement,the economic consequences of the event is reflected by analyzing the market reaction,financial performance and non-financial performance of Shuanghui Development after this asset-injected private placement,The research results are as follows:(1)In terms of market reaction,the stock price of Shuanghui Development has risen sharply in the short term during the event window period,and the accumulated abnormal return is significant and positive;(2)In terms of financial performance,(1)Shuanghui Developments solvency has improved after the private placement,and is higher than the industry average;(2)Earnings per share continue to increase,and profitability is generally stable;(3)Operational capacity has not improved significantly,but is higher than the industry average;(4)The overall growth ability remains stable,and the scale of net assets expands significantly;(3)In terms of non-financial performance,(1)non-listed assets have been listed and circulated;(2)related transactions between listed companies and the original parent company have been reduced;(3)listed companies have been promoted to achieve the integration of the entire industry chain;(4)The internal organizational structure of the group has been simplified,and the decision-making efficiency has been improved accordingly.In order to further explore the causes of the above-mentioned good economic consequences,this thesis analyzes the realization path of the above economic consequences by combining the synergy effect theory,principal-agent theory,connected transaction theory and industrial organization theory.The research results are as follows:(1)Improve asset liquidity through asset securitization;(2)Relevant asset injection produces synergistic effects,and business scale expansion reduces costs;(3)Listed companies absorb all related businesses of the original parent company to reduce related transactions;(4)The whole industry chain integration is realized through horizontal integration and lateral integration;(5)Shorten the commission-agent chain and implement the divisional management model.Based on the above analysis results,the following conclusions are drawn:(1)Asset securitization is realized under the asset injection-type private placement;(2)The injection of high-quality assets produces a synergistic effect and enhances the competitiveness of listed companies;(3)The original related parties are injected into Listed companies can effectively reduce the scale of related-party transactions;(4)Explore multiple paths to promote the integration of the whole industry chain;(5)After the merger and absorption,the internal management level of the group is reduced to achieve flat governance.Finally,according to the research conclusions of this case,the following universal enlightenments are obtained:(1)Asset-injection-based private placement is an effective means to realize asset securitization;(2)Assets with high business synergy and high profitability are selected as injections(3)The injection of related assets is an effective way to reduce related transactions;(4)Encouraging major shareholders to inject high-quality assets to achieve the integration of the whole industry chain;(5)Reducing the management level and expanding the management range are the keys to achieving flat governance.