Research for the Influence of the Investors’ Types in Private Placements of China's A-Share Listed Companies on their Performance

Abstract

The existing domestic literatures in China on the type of private equity placements’ investors has been still classified by the criteria that if it is the controlling shareholders or not. This paper attempts to bridge the gap in the existing literatures, takes the way that the investors impacts on corporate governance as criteria for the classification, and thus classifies the private equity placements object to study the impact of the private equity placements object on company performance. The empirical analysis concludes that: first, the placements to the controlling shareholders has a negative impact on firm performance; second, related party transactions between the enterprise and their shareholders can improve the value of the company; Finally, the placements to the outside investors has a positive impact on corporate performance, but the institutional investors because of their negative attitude to corporate governance cause a slight negative impact on firm performance.