TITLE:
Research on the Impact of Private Placement on Enterprise Innovation—Evidence from Chinese A-Share Listed Companies
AUTHORS:
Dongfang Qiu, Xinlei Yu
KEYWORDS:
Private Placement, Enterprise Innovation, Nature of Ownership, Sector Characteristics
JOURNAL NAME:
Open Journal of Business and Management,
Vol.8 No.3,
April
8,
2020
ABSTRACT: This paper selects the data of China’s A-share
listed companies from 2012 to 2018, and uses propensity score matching and
difference-in-difference method to analyze the impact of private placement on
enterprise innovation. The research found that: private placement will promote
enterprise innovation; after further subdividing the nature of ownership,
compared with state-owned enterprises, the role of private placement in
promoting enterprise innovation is more obvious in non-state-owned enterprises;
after subdividing the characteristics of the sector, compared to the Main board
listed companies, the promotion effect of private placements on enterprise
innovation is even more pronounced on GEM and SME board listed companies. Based
on the empirical research in this article, regulators should further improve
the private placement system, while encouraging investors to actively exercise
their supervisory power, supervise the use of funds raised by private placement
and actively support enterprise innovation activities, so as to enhance the
innovation vitality of the entire economic market.