Study On The Impact Of Private Placement On Non-Efficient Investment Of Enterprises

Private placement is a "non-public" issuance of shares by listed companies in order to raise funds,and there are certain restrictions on the number of issuance objects,and it is difficult for individual investors to meet the requirements for participating in the private placement investment,so it is generally strategic investors or institutional customers who participate in the private placement.Thanks to the simple issuance procedures and the low acquisition cost compared with other financing methods,the private placement has gradually gained the favor of listed companies.However,China’s private placement market is not yet mature,and there will often be listed companies blindly issuing private placements for financing,resulting in a series of non-efficient investment behaviors,wasting economic resources,which is not conducive to the healthy and stable development of the market,so it is more important to explore the impact of private placement on the non-efficient investment of enterprises.The empirical research content of this paper is mainly divided into two perspectives: first,from the perspective of investment scale,to explore the impact of private placement on enterprise inefficiency investment,to quantify the non-efficient investment value by using the Richardson(2006)model to demonstrate whether enterprises will have non-efficient investment behavior after private placement;and on the basis of the main effect research,the moderating effect of institutional investors and financial mismatch degree on the influence of private placement and enterprise non-efficient investment is added;in addition,From the perspective of financial performance,this paper constructs an investment efficiency scoring model through factor analysis,and explores the impact of private placement on enterprise nonefficiency investment and its effect from multiple angles and aspects.The research results show that:(1)While enriching the cash flow of enterprises,private placement is also easy to make enterprises have inefficient investment behavior.(2)Institutional investors,financial mismatch on the impact of private placement on the adjustment effect of enterprise non-efficient investment is reflected in: institutional investors participate in the private placement can alleviate the non-efficient investment of enterprises,and financial mismatch will aggravate the effect of private placement on enterprise non-efficient investment(3)Further research found that in left-facing financial mismatch enterprises,after the private placement,enterprises are more likely to occur non-efficient investment behavior,and it is more likely to over-invest after the left-facing mismatch of enterprises,and in the right-to-mismatch environment,The non-efficient investment effect of enterprises caused by private placement is less significant than that of left-oriented mismatch,and the non-efficient investment of enterprises under right-direction mismatch is more manifested as underinvestment...