Private Placement,Strategic Investors And Enterprise Innovation

The report of the 20 th National Congress of the Communist Party of China proposed that China’s economy should change from high-speed development to high-quality development,and innovation is an important driving force to achieve high-quality economic development.Entering a new era,innovation driven development is the only way to achieve sustainable and healthy economic and social development,and it is also the basis for enterprises to climb the barriers and grow.For modern enterprises,in order to achieve long-term development in the market,they must form stronger innovation ability,so as to have their own competitiveness,form a gap with other enterprises,improve their position in the market environment,and achieve the goal of corporate profit.Enterprises must give full play to their potential,pay more attention to innovation,and take various measures and means to continuously improve the level of enterprise innovation.However,in the process of innovation,enterprises need to invest a lot of capital and manpower.For listed companies,issuing shares to raise funds in the stock market can alleviate the problem of lack of capital for innovation investment.After the split share structure reform,private placement of new shares has become the main way of equity refinancing for listed companies in China due to its simple audit procedures,low issuance costs,and low requirements for information disclosure.In 2020,the CSRC issued new rules on refinancing and appropriately relaxed the conditions in the process of refinancing,such as the regulations on fixed increase prices and restricted sales periods,which greatly improved the activity of the fixed increase market,and the enthusiasm of strategic investors to participate in the subscription of directional additional new shares also increased,and the CSRC has more clear regulations on strategic investors.But it needs to be noted that the way of introducing strategic investors through private placement of new shares is helpful for enterprises to innovate? What kind of strategic investors have better effect on enterprise innovation? Long-term,sustained studies are needed.The introduction of strategic investors enables enterprises to obtain capital,technology,management and other resources,which makes listed companies frequently offer olive branches.In the existing research,the research on the introduction of strategic investors has been very rich,while the research on the introduction of strategic investors through private placement mainly focuses on the banking industry.On the whole,only a few scholars have studied the introduction of strategic investors to non banking enterprises,and most of them focus on the impact of enterprise performance,There are also a few scholars who have studied whether strategic investors can improve corporate governance and investment efficiency,but the research conclusions have not reached consensus,and the research on the impact of introducing strategic investors through private placement of new shares on enterprise innovation is rare.Therefore,this thesis takes the companies that have implemented private placement in A-share listed companies from 2007 to 2020 as the research object,analyzes the relationship between strategic investors subscribing private placement and enterprise innovation from both theoretical and empirical perspectives,and studies the impact of introducing different types of strategic investors on enterprise innovation,taking into account the company type,industry type and industry type of strategic investors.In addition,it deeply analyzes the intermediary effect of corporate governance,risk bearing and agency cost in introducing strategic investors and enterprise innovation into private placement.In order to make the research conclusion more reliable,this thesis uses substitution variables,Heckman model and PSM to conduct a robustness test,and finally concludes that:(1)Introducing strategic investors into private placement can improve enterprise innovation.(2)Based on the research on the differences among strategic investor companies,industries and industry types,it is found that strategic investors belonging to high-tech enterprises and strategic investors belonging to the same industry and industry with fixed growth companies can promote enterprise innovation.(3)The intermediary effect of enterprise risk taking.Enterprise risk bearing has played a significant intermediary effect in the process of introducing strategic investors to the private placement of new shares to influence enterprise innovation,that is,the participation of strategic investors in subscription of private placement of new shares can improve the level of enterprise risk bearing,thereby positively promoting enterprise innovation.(4)The intermediary effect of agency cost.In the process of strategic investors’ participation in subscription of new private placement affecting enterprise innovation,agency cost has played a significant intermediary effect,that is,strategic investors’ participation in subscription of new private placement can positively promote enterprise innovation by reducing agency cost.(5)The intermediary effect of corporate governance.In the process of strategic investors’ participation in subscription of directional new shares affecting enterprise innovation,corporate governance has played a significant intermediary effect,that is,strategic investors’ participation in subscription of directional new shares can positively promote enterprise innovation by improving the level of corporate governance.The main contributions of this thesis are as follows: First,This research focuses on the analysis of the influence of the introduction of strategic investors into the private placement of new shares on the enterprise innovation,thus expanding the relevant research on the economic consequences of private placement of new shares.Second,this thesis further distinguishes the types of strategic investors,tests the impact of strategic investors on enterprise innovation,and reveals the differences of the impact of different types of strategic investors on enterprise innovation.Third,this thesis examines the mechanism of strategic investors’ influence on enterprise innovation from three perspectives of corporate governance,risk bearing and agency cost,comprehensively analyzes the mechanism,and enriches the relevant research on the factors affecting innovation.This study verifies and tests the relationship between the introduction of strategic investors into private placement companies and corporate innovation behavior from the perspective of the impact of strategic investors on corporate governance,thus enriching the literature on the impact of strategic investors on corporate governance.