• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
HOME > Archive > 2023 > Volume 14 Number 1 (Feb. 2023) >
IJTEF 2023 Vol.14(1): 1-6 ISSN: 2010-023X
DOI: 10.18178/ijtef.2023.14.1.747

Research about the Impact of Institutional Investors and Major Shareholders on the Discount Rate of Private Placement

Yanping Liu*, Mengmeng Yu, Sisi Wang, and Rong Wang

Abstract—Since the promulgation of the Measures for the Administration of Securities Issuance by Listed Companies in May 2006, private placement has become the favorite of equity refinancing in China's capital market, and the number and scale of private issuance have increased by doubled. In the implementation process of the private placement plan, the most significant feature is that the pricing of the additional placement shares has a certain discount rate. The discount rate is an important performance of whether the pricing of the private placement is fair, whether the distribution of the interests of new and old shareholders is reasonable, and whether the equity refinancing of listed companies is efficient. This paper takes listed companies from 2006 to 2014 as samples, combines the research of many scholars at home and abroad on placement discount rate, and uses empirical analysis to study the influence of major shareholders on placement discount rate, the influence of institutional investors on the placement discount rate, and the combined influence of major shareholders and institutional investors on the discount rate of private placement. Through empirical analysis, this paper drew the following conclusions: the participation of major shareholders in placement subscription can increase the discount rate of private placement price; the participation of institutional investors can reduce the discount rate; and when the major shareholders and institutional investors participate in private placement at the same time, the participation of institutional investors will restrain the increase of discount rate of private placement.

Index Terms—Discount rate of private placement, institutional investors, major shareholders.

Yanping Liu is with School of Economics and Management, Dalian University of Technology, Dalian City, Liaoning Province, China.
Mengmeng Yu, Sisi Wang, and Rong Wang are with Dalian University of Technology, Dalian City, Liaoning Province, China.
*Correspondence: sylyp008@dlut.edu.cn


[PDF]

Cite: Yanping Liu*, Mengmeng Yu, Sisi Wang, and Rong Wang, "Research about the Impact of Institutional Investors and Major Shareholders on the Discount Rate of Private Placement," International Journal of Trade, Economics and Finance vol.14, no.1, pp. 1-6, 2023.

Copyright © 2023 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

PREVIOUS PAPER
First page
NEXT PAPER
How to Measure the Level of Trade Facilitation in a Small Area: Evidence from China

Copyright © 2008-2024. International Journal of Trade, Economics and Finance. All rights reserved.
E-mail: ijtef.editorial.office@gmail.com