Private placement has become an increasingly important method of equity refinancing for regulators, listed companies, and investors. This paper analyzes factors influencing private placement discounts based on the con...Private placement has become an increasingly important method of equity refinancing for regulators, listed companies, and investors. This paper analyzes factors influencing private placement discounts based on the controlling shareholder＇s opportunistic behavior and information asymmetry. Our findings indicate that the type of subscriber is a key determinant of the private placement discount, particularly when the subscriber is the controlling shareholder. Asymmetric information between listed companies and investors is another important determinant： The higher the degree of information asymmetry, the greater the private placement discounts.展开更多
With the gradual completion of the split-share structure reform,private placement has gradually become the mainstream of refinancing. One of the points that the practical and theoretical circles are widely concerned a...With the gradual completion of the split-share structure reform,private placement has gradually become the mainstream of refinancing. One of the points that the practical and theoretical circles are widely concerned about is that the private placement price is often higher than the market price at the time of the private placement. High discounts are often accompanied by the transmission of benefits,and the increase in insider information will lead to the risk of a stock market crash? This paper intends to use the data of A-share listed companies from 2006 to 2015 to empirically study the relationship between the discount on private placements and the risk of stock market crash. At the same time,this paper examines whether the degree of information asymmetry plays a regulatory role in the relationship between the discount on private placements and the risk of stock market crash. This paper provides a certain reference for the regulatory authorities to improve the relevant laws and regulations in the private placement,and to provide a certain reference for the protection of the interests of small and medium-sized investors.展开更多
基金Acknowledgments This paper is supported by the National Social Science Foundation of China （No. 10CJY007） and the Southwestern University of Finance and Economics （2010XG072）. We greatly appreciate the extensive assistance from Katherine Ye, Xiaoqin Qi, and Yichen Deng.
文摘Private placement has become an increasingly important method of equity refinancing for regulators, listed companies, and investors. This paper analyzes factors influencing private placement discounts based on the controlling shareholder＇s opportunistic behavior and information asymmetry. Our findings indicate that the type of subscriber is a key determinant of the private placement discount, particularly when the subscriber is the controlling shareholder. Asymmetric information between listed companies and investors is another important determinant： The higher the degree of information asymmetry, the greater the private placement discounts.
文摘With the gradual completion of the split-share structure reform,private placement has gradually become the mainstream of refinancing. One of the points that the practical and theoretical circles are widely concerned about is that the private placement price is often higher than the market price at the time of the private placement. High discounts are often accompanied by the transmission of benefits,and the increase in insider information will lead to the risk of a stock market crash? This paper intends to use the data of A-share listed companies from 2006 to 2015 to empirically study the relationship between the discount on private placements and the risk of stock market crash. At the same time,this paper examines whether the degree of information asymmetry plays a regulatory role in the relationship between the discount on private placements and the risk of stock market crash. This paper provides a certain reference for the regulatory authorities to improve the relevant laws and regulations in the private placement,and to provide a certain reference for the protection of the interests of small and medium-sized investors.
