Study on the Operating Performance of Equity Private Placement in China

摘要

This article select the financial data of 2006 and 2007,We choose 14 financial indexes which reflect listed companies' profitability,debt paying ability, operation ability,growth ability and cash flow ability to establish a financial index system to see whether the operating performance has been improved or not. Institutional investors participated in the private placements can improve the operating performance,while those sell their private stocks to the leading shareholders have their operating performance declined. The companies sell at larger discounts faced declined operating performance compared to the companies sold at smaller discounts, and it illustrated that investors can differentiate the quality of the companies.