Welcome to free paper download website

China's small and medium-sized listed companies equity refinancing performance change Empirical Analysis

Author: ZhouYunLan From: www.yourpaper.net Posted: 2010-04-02 02:24:16 Read:
[Abstract] article by a statistical description of the results of changes in equity refinancing of listed companies in China, the decline in the performance of the company equity refinancing conclusions. And the company is divided into large companies and small and medium-sized enterprises listed companies, the change in performance of their equity refinancing comparative analysis, the results show that China's small and medium-sized listed companies refinancing long-term decline in performance is indeed a serious decline than large companies, which also consistent with the results of some scholars.
[Words] small and medium-sized listed companies; equity refinancing; performance changes

Refinancing the company's equity research can be traced back to the 1960s. Stigler (1964) and other studies have found that the company equity refinancing stocks tend to go through a long dismal performance, price behavior for the downward trend, but the issue until after the 1986 System. Most countries have significantly negative effect of company equity refinancing, including the announcement of negative abnormal returns and prices in the short term negative effects, and long-term operating results worse. Scholars from various countries from the window of opportunity, price pressures, changes in the capital structure, signal assumptions, earnings management to equity refinancing decline in operating results to theoretical support. The author will be empirical research in recent years, the results of changes in the shareholder structure of listed companies in China refinancing.

First, the indicators, sample selection

(A) financial indicators selection and sample selection
This study selected samples to January 1, 2001 December 31, 2004, the Shanghai Stock Exchange and Shenzhen Stock Exchange A-share equity refinancing company, including January 1, 2001 December 2004 31 listed companies in Shenzhen and Shanghai A-share rights issue to refinance a total of 163 (declared to allotment date) during this period, of which there are five companies twice Fund total of 168 times. 163 companies have 10 delisting, the remaining 153 companies, 153 companies, 21 are SMEs listed companies, accounting for 13.73% ratio. (Where the total share capital of less than or equal to 200 million shares outstanding capital stock in the split share reform before less than or equal to 5,000 shares classified as small and medium-sized enterprises instead of the standard.) January 1, 2001 December 31, 2004 A listed companies in Shenzhen and Shanghai shares issuing new shares to refinance a total of 69 (declaration date of the issuance of new shares), 69 times. 69 a delisting, the remaining 68 companies, while 68 companies, 13 are SMEs listed companies, accounting for 19.11 percent ratio. Deducted currently has a total of 12 companies delisting in the period January 1, 2001 December 31, 2004, the issuance of new shares or rights issue equity to refinance the company a total of 221. This study will be selected sample of 221 companies as of (twice in a row, or the rights or issuance of new shares, more than twice during the study, we examine the first equity refinancing). And 221 listed companies 2000-2006 annual financial ratios as follows: The main income growth rate, the main profit growth, net profit growth, the growth rate of total assets and net assets yield conducting research, the calculation of financial indicators The formula is as follows:
X1: Main income growth rate = (current main business income - on the main business income) / the absolute value of main business income
X2: main profit growth rate = (main profit for the period - the main profit of the previous period) / absolute value of the main profit
X3: The net profit growth rate = (Net profit for the - the previous period net profit) / on on the net profit of the absolute value of
X4: the growth rate of total assets = (total assets at the end of period - beginning of period total assets) / beginning of the absolute value of the total assets
X5: Net assets yield = Net Income / Current shareholders' equity
ROE indicators of the profitability of the business, the ability to create profits reflect corporate operations. The main business revenue growth, the main profit growth, net profit growth, the growth rate of total assets to evaluate refinancing the company's growth. The investment company is to invest in its future, and expect to be able to get the company's stock is generous cash dividends and attractive price upside, are inseparable from the growth of the company's cash dividends and share price rose. The capabilities of the company's growth, is an important factor in the evaluation of investment value. Growth capacity analysis is compared with previous years, the financial indicators longitudinal analysis, be able to determine by analyzing the trend. Generally, with the expansion of the scale of the refinancing, the main business revenue growth should also grow accordingly, the indicators can better reflect the company's continued profitability, growth and development trends.
(B) data sources and processing
In this study, data from: (1) wind the financial engineering database www.Wind.com.cn; (2) Tsinghua University, China's financial research database http://thfd.sem.tsinghua.edu.cn data analysis using Eviews3.1 version of EXCEL software processing.

Second, China's small and medium-sized listed companies equity refinancing performance change statistical analysis

(A) the statistical description of the results of changes in all of our listed companies refinancing
Table 1 financial ratios of the 2000-2006 year are as follows: the statistical description of the main income growth rate, the main profit growth, net profit growth, the growth rate of total assets and net assets yield analysis:
See from Table 1 equity refinancing company 2000-2006 Annual Mean ROE from 2000-2005, all companies and small and medium-sized companies of 34 equity refinancing descending order in 2005 to reach the lowest point, and then 2006 the year there are rising, 187 equity refinancing descending order from 2000-2006, reaching its nadir in 2006. ROE is net profit divided by shareholders 'equity, net profit margin on net assets decline may be caused by a decline in net profit, but also may be caused due to the expansion of the shareholders' equity. In general, equity refinancing when ROE compared to the previous year decreased, mostly because the year increased by a lot of equity, which is normal; subsequent years in the case of no large-scale increase in shareholders' equity, net asset yields continue to decline can only be attributed to the decline in net profit earning power. As the capital of the sample companies, the time of allotment equity refinancing in 2001-2004, every year there is some equity refinancing, that large-scale increase in shareholders' equity, and therefore not completely normalized the above ROE of declining In response to the decline in earning power. Absence of specific sub-sectors, and can not be compared with the industry average ROE, therefore the following according to the time each company equity refinancing will be divided into one year before the capital increase or allotment (referred to as -1 year), capital increase or allotment year after year (referred to as 0 annual) capital increase or allotment (referred to as an annual) capital increase or allotment after two years (referred to as the annual 2), and a detailed comparison of the various financial ratios, respectively, by small and medium-sized listed companies and large companies, see as set forth in Table 2 and Table 3.
From financial indicators that the sample mean and standard deviation of descriptive statistics analysis table, small and medium-sized enterprises and large companies equity refinancing (1) Return on net assets per year beginning with the year showed a certain degree of decline, while the equity refinancing rate of decline, such as the above analysis, as, on the one hand because of the decrease in revenue, on the other hand because the then equity refinancing increased many shareholders' equity, resulting in the decline in its ROE for the year; combined with the main income growth rate main profit growth, net profit growth of view, they also show a downward trend, profitability and ability to grow a certain decline also contributed to the reasons for the decline of ROE. Refinancing, second and third years of the first year, if only because of the decline in earning power still declined. Compared to the main income growth rate, the main profit growth, net profit growth rate of the three financial indicators mean refinancing the previous year, basically is a declining trend, indicating the equity refinancing refinancing profitability as well as the ability to grow There are certain decline.


(2) the total assets a year-on-year growth rate than refinancing increased when, back a few years, compared to refinance the previous year are declining. In those days, because of the capital increase or allotment increase many of equity, total assets improved, thus the year greatly improved year-on-year growth rate of total assets, while other years due to the decline of profitability, not through retained earnings increased internal equity financing thereby increasing the assets, while other rates decline or difficult do not need to add more assets, resulting in a year-on-year growth rate of total assets decreased year by year. Description of the listed companies, regardless of size after the capital increase, allotment refinancing long-term decline in operating results, that is in line with the front scholars empirical studies of equity refinancing long-term negative effects of the phenomenon, the shareholder structure of listed companies in China, also known as refinancing after the "Changing Faces".
 1/2    1 2 Next Last
Please consciously abide by Internet-related policies and regulations.
Tips: Log in to comment, the user name to enter comments directly from your personal space, so that more friends to meet you.

Company Research latest papers

Sponsored Links

Company Research papers Ranking

Latest free papers

Sponsored Links

Top