With the introduction of private placement in 2006, more companies get the access to capital for development. As one of the most important way for financing, private placement has being running well for 6 years. While many stock prices of which implement private placements fall on debut, investors, including institutional investors keep high favor for private placement. It attracts our attention, and it is of importance to study the suitability of marker reaction to private placement.
Through empirical research, this thesis aims to study the effects of private placement on stock prices from the secondary market, and reveal its impact on the wealth of small and medium shareholders. In addition, we will match the market response with related corporate value, thus judging on the rationality of stock market. This thesis can be divided into five parts:
Firstly, it introduces the meaning and motivation of this study. Give the background of this writing and introduce basic terms of the private placement, making a foundation for the whole words.
Secondly, it introduces theoretical foundation and literature review. Explain some basic concepts of private placement and sum up the general view of references, finding the entry point of this writing.
Thirdly, it conducts statistical analysis. To collect large amounts of data and cites scientific evidence on the variation of stock price and operating performance statistics, finding the law of one of the factual basis for the conclusion of this article.
Fourthly, it makes a comprehensive comparison. Integrate the statistical results from the third part. Use SPSS for correlation analysis, offering more systematic evidence of the relation between stock price and company value.
At last, it rises out some advice for different participants, promoting the progress of the market.
Based on the statistical analysis of 90 samples, it