Empirical Study on Impacts of Private Offerings on Corporate Performance After the Split Share Reform
|School||Shanghai Jiaotong University|
|Keywords||Split share structure reform Major shareholders Private placement Announcement Effect Event study methodology Factor Analysis|
From the institutional level, the implementation of the split share structure reform reduced major shareholders of listed companies and the interests of minority shareholders against, but also had a profound influence on the behavior patterns of the major shareholders. With the successful completion of the equity division reform, the interests of minority shareholders base that is more consistent, \get a huge return on investment in the growth and profitability. This paper focuses on listed companies \the performance of listed companies influence of literature comb, this paper put forward the following assumptions: (1) directed issuance has significantly with positive stock price, \including single-day average excess return rate (AAR) and cumulative abnormal return rate (CAR) of the window period that the AAR gt; 0, committed access rate (CAR) gt; 0. (2) private placement of long-term operating results of listed companies has a role in promoting: a concrete manifestation of a significant improvement in the overall operating performance of each of the years after the completion of the private placement. The demonstration and testing of these two hypotheses is the core part of this article, in which short-term stock price \results of operations of 11 the indicators constructed operating results function and significant test score function performance rankings change. Empirical evidence shows that the private placement of short-term performance has a significant positive \etc. \However, the private placement on the effects of long-term operating performance of listed companies basic not significant, did not significantly improve the operating performance relative ranking of the three years that a listed company after the private placement completed. Long term, the willingness to support of the major shareholders of the listed company's operating performance does not have a decisive impact. However, the motivation of the support of the major shareholders of listed companies announced private placement of listed companies in the sample appeared in 2008: the sample of listed companies in 2009, 2010 operating results ranking improved significantly. This paper argues that the outbreak of the financial crisis, but also help to inspire the motivation of the support of the major shareholders of listed companies at this stage to get the assistance of the major shareholders of listed companies are more resistant to the negative impact of the financial crisis, the empirical results of Simon Johnson (1999) \Corporate Governance in the Asian Financial Crisis \In response to these findings, this paper gives recommendations include: to strengthen the supervision of the system of policies and regulations, improve the information disclosure mechanism of the capital market, and stressed that investors establish a rational investment philosophy and implement protection mechanisms for small investors.