Research On The Short-term Stock Price Effect And Influencing Factors Of Private Placement Of Listed Companies

Directed issue,also known as non-public offering of shares or fixed issue,has experienced rapid development after China’s equity subdivision reform.As a highly favored direct financing method at present,directed issue has been one of the research focuses of domestic and foreign scholars.Most of these studies have focused on the impact of private placement announcements on short-term stock prices,especially the short-term stock price effect of directed issue pre-proposal,while there are relatively few studies on the effect of directed issue completion announcement.And there are few regression analyses using information from two announcements on the cumulative excess returns around the event date.Therefore,this paper pay more attention to the short-term stock price effect of the announcement of the completion of a directed issue based on the previous studies and uses the information in the two announcements to analyze the cumulative excess return before and after the event date.In order to conduct the above study,this paper uses the event study method to investigate the short-term stock price effect of the targeted issue,which contains the shortterm stock price effect of the pre-proposal announcement and the short-term stock price effect of the targeted issue completion announcement.After that,the information in the two announcements is used to conduct regression analysis and robustness test on the excess cumulative return.The empirical results are shown below.Firstly,the short-term stock price effect of the directed issue does exist,and the short-term stock price effect of the preproposal date is better than the short-term stock price effect of the completion date,and the short-term stock price effect of the pre-proposal date will be shown earlier.Secondly,in the pre-proposal announcement,the share price performance of listed companies that disclosed the issue targets around the pre-proposal date is better than that of listed companies that did not disclose the issue targets,and the regression result performance is significantly positive.In further analysis,it is found that the effect on the cumulative excess return is significantly positive when the disclosure information of listed companies includes the issue targets and the issue targets are related.Thirdly,the higher the participation of institutional investors in the announcement of the completion of the directed issue,i.e.,the higher the proportion of the number of institutional investors to the number of issue targets,the better its effect on the cumulative excess return.But the effect becomes insignificant as the time window selected for the cumulative excess return is extended.Fourthly,the cumulative excess return around the completion announcement date of listed companies that have not disclosed the specific issue targets in the pre-proposal announcement performs better than that of listed companies that have approved the issue targets,and the regression results perform significantly positive,although the duration will not be long.Based on the above conclusions,this paper puts forward corresponding suggestions to government regulators,listed companies and investors respectively.For the government,it should continuously improve the monitoring system and laws and regulations,strengthen supervision,and try to eliminate the occurrence of information asymmetry and insider trading.For listed companies,they should avoid the leakage of insider information,strengthen information disclosure,and consciously accept the supervision of the market.And for investors,they should be conscious of the risks of the financial market,be rational about the fixed income market,improve the ability of information screening,and reduce the blindness of following speculation.