An Empirical Study on the Option of Seasoned Equity Offering Ways in Listed Real Estate Companies

摘要

With the implementation of a series of policies for real estate market regulation in China, e.g. “Sales Order”, as well as the credit policies keeping tightened to control inflation, the financial pressure for real estate companies will be gradually growing. Hence, it is imperative to diversify financing channels. Among these financing channels, SEO (Seasoned Equity Offering) has increasingly been an important source of funds. How to select the way of SEO, rights offering or new issuance, which is a major concern nowadays, has been a focus of research at home and abroad. Based on the 254 samples of listed real estate companies in Shanghai and Shenzhen stock markets, this paper studies the effects of equity characteristics and financial performance on the option of the ways of SEO with Logistic regression analysis method. Thus, it is concluded that the companies with the higher proportion of tradable shares tend to choose new issuance, while rights offering is preferred if the solvency is stronger. References are given to real estate industry for implementation and supervision.