Corporate control and choice of seasoned equity offering based on Chinese directional add-issuance's motivation

摘要

When the share rights concentration degree is high big shareholder will become the ultimate controlling owners of the listed company. This paper studies the preference of the directional add-issuance based on the realities of China capital market, and studies the effect of the historical performance, share rights concentration, asymmetric information, and operation risk on the re-financing options by empirical analysis. Its results show that the effect of share rights concentration on preference of the directional add-issuance is significant, and the lower share rights concentration, the bigger is the motivation of directional add-issuance. All that shows the preference of directional add-issuance is due to strengthen the control rights.