Research On The Motivation And Performance Of DX Securities Co.,Ltd’s Private Placement

The China Securities Regulatory Commission revised the Administrative Measures on Securities Issuance by Listed Companies in February 2020.The new policy relaxed the conditions for non-public share offerings,enhanced the ability of the capital market to serve the real economy,and enhanced the attraction of the private placement market for funds.From 2020 to 2021,more than 800 listed companies carried out private placement refinancing.As an important refinancing channel for listed companies,private placement is increasingly favored by the capital market.The motivation and performance of private placement has become a hot topic.Through reviewing the existing research literature on private placement,this paper finds that there are few researches on private placement of Chinese securities companies,especially the researches on motivation and performance are still many gaps.Therefore,this paper takes DX securities as the research object and conducts an in-depth study on the motivation and performance of its private placement.Based on the increasingly mature regulation and system,this paper analyzes the external and internal motivations of DX securities private placement by combining with the characteristics of late start and rapid development of the securities industry.Based on the theory of information asymmetry and the theory of efficient market,this paper subdivides the external motivation into institutional motivation and development motivation.After that,the institutional motivation driven by policy and market is studied in detail by using PEST analysis method,the opportunities and challenges faced by DX securities under the industrial background are explored,and the development motivation is deduced from its own development needs.When examining the internal motivation,this paper draws on the previous research results and combines with the actual situation of DX securities to conclude that its private placement is mainly driven by the two objectives of optimizing capital institutions and raising project funds,and summarizes and concludes the internal motivation.This paper studies the performance of DX securities private placement from three aspects: market performance,financial performance and non-financial performance.Firstly,the short-term and long-term market performance is studied by calculating the AR,CAR and BHAR of investors,and the conclusion is drawn that the private placement can improve short-term market performance but reduce long-term market performance.This paper innovatively studies customer resources in the securities industry as market performance,and finds that private placement can attract more customers and establish corporate reputation,and draws the conclusion that private placement is conducive to improving customer recognition.Then,this paper studies the changes of short-term and long-term financial indicators of DX securities before and after the private placement from four aspects of operation,debt repayment,profitability and development ability,and draws the conclusion that the private placement has more advantages than disadvantages in improving financial performance.Finally,combined with the actual situation of DX securities,the private placement of funds and the introduction of new shareholders are analyzed,and the role of DX securities in the expansion of branches and regional business promotion is judged,and the conclusion is drawn that the private placement can have a positive impact on non-financial performance through synergistic effect.This paper summarizes the research on the motivation and performance of DX securities private placement,and concludes that the motivation of DX securities private placement is the result of the interaction of external motivation and internal motivation,and the two are complementary and indispensable.The overall performance improvement effect of DX securities private placement is good,the short-term performance improvement degree is higher than the long-term performance,and different types of performance are affected by different or even completely opposite.The research of this paper will provide useful reference for securities enterprises to clarify the purpose of secondary offering and improve the effect of secondary offering.