Author(s)

Yuexu Yang, Yan Zhou

Corresponding Author

Yuexu Yang

ABSTRACT

After the reform of non-tradable shares, private placement, as a way of equity refinancing, has gradually become an important way for listed companies to obtain working capital. Its issuance is more convenient and flexible, and the funds obtained by the company can also be used to optimize the allocation of corporate resources, so as to improve business performance and sustainable development ability. Therefore, compared with other financing methods, the private placement has unique advantages, and also occupies a considerable proportion in equity refinancing. Many scholars at home and abroad have discussed and studied it, but there are few studies on the impact of private placement on the business performance of listed companies, and the conclusions of the studies are difficult to reach a consensus. The impact of private placement on business performance is the main research content of this paper, through the quantitative processing of enterprise performance, to study the impact of private placement on the business performance of listed companies. This paper first makes a theoretical analysis on how the private placement affects the business performance, that is, how the private placement affects the business performance; On this basis, the paper constructs the index system of the company's business performance, and analyzes the changes of the company's business performance before and after the private placement with the method of factor analysis. Finally, according to the results of empirical research, the possible causes of this result are analyzed, and then the corresponding policy suggestions are put forward.

KEYWORDS

Business performance, private placement, factor analysis