The Impact Of Refinancing Regulations In 2017 On Investment Behavior Of Listed Companies

Private placement is the main way of corporate equity refinancing and the main source of funds for corporate investment.Since 2013,private placement has entered a stage of rapid development.By 2016,the scale of private placement has reached its peak,far exceeding IPO.But during this period,a series of market chaos occurred frequently,such as excessive financing of listed companies,out of real to virtual,tunnel digging and so on.In order to maintain market order,protect the interests of minority shareholders and guide capital flow reasonably,China Securities Regulatory Commission issued a series of regulatory policies in 2017(collectively referred to as the Refinancing Regulations in 2017)to rectify market chaos.In 2017,the new regulations for the first time increased the restrictions on the holding of corporate financial assets,guiding listed companies to use funds rationally and focus on the main business,which may have an impact on corporate financial investment and industrial investment.In this paper,A-share listed companies from 2012 to 2019 are selected as samples to study the impact of the Refinancing Regulations in 2017 on corporate investment behavior,including financial investment and industrial investment.Through the DID model,the empirical test is conducted to analyze whether the policy implementation is conducive to the practice of the concept of financial service entities.Furthermore,the impact and consequences of the new regulations are further explained according to the heterogeneity analysis.In order to further explain the policy effect of the Refinancing Regulations in 2017,it is compared with the new regulations in 2020.Finally,it puts forward specific suggestions according to the actual situation.The empirical study found that: Firstly,the Refinancing Regulations in 2017 are conducive to inhibiting corporate financial investment,prompting enterprises to focus on the main business,and guiding and standardizing the use of funds.Secondly,the Refinancing Regulations in 2017 have a inhibitory effect on enterprise and industrial investment.As the new regulations tighten the issuance requirements,the refinancing market is tight,which is conducive to the rational recovery of investors,but it will still have a certain negative impact on enterprise and industrial investment.Thirdly,the influence of the new regulations on the investment behavior of enterprises is heterogeneous at the level of industry and ownership.From the perspective of industry,compared with the non-manufacturing industry,the Refinancing Regulations have a weaker inhibitory effect on the financial investment of manufacturing enterprises,but a more significant inhibitory effect on the industrial investment of manufacturing enterprises.From the perspective of ownership,compared with state-owned enterprises,the inhibition effect on non-state-owned enterprises’ financial investment and industrial investment is more significant.Fourthly,in 2020,after the adjustment of some regulations in 2017,it will still have a significant inhibitory effect on corporate financial investment and a significant promoting effect on corporate industrial investment,which will continue to help the capital market play the function of financial services entities.Based on the empirical test results,this paper puts forward countermeasures and suggestions from the two perspectives of regulators and issuers.From the perspective of supervision,the first is to formulate refinancing policies according to the actual situation of enterprise refinancing;Secondly,we will continue to optimize refinancing policies and programs in light of the market environment and guard against the resurgence of market chaos.From the perspective of enterprises,the first is that the enterprise financing plan needs to adapt to the market rules and adjust flexibly,and the second is that the use of funds needs to focus on the real industry.