2013 Fiscal Year Final Research Report

Empirical analysis of equity financing in the Japanese market; comparison between private placement and secondary offering

Research Project

Project/Area Number	23730338
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Multi-year Fund
Research Field	Business administration
Research Institution	Otaru University of Commerce
Principal Investigator	HODA Takaaki 小樽商科大学, 商学研究科, 准教授 (90581546)
Project Period (FY)	2011 – 2013
Keywords	コーポレートファイナンス / エクイティファイナンス / 実証分析 / 公募増資 / 第三者割当増資 / 資金調達
Research Abstract	I have done empirical analysis of equity financing in the Japanese market to understand the type of transactions that the stock market would welcome. First, I did event study of stock price movement of private placement and secondary offering around the announcement days. Second, I have done empirical analysis of long term stock price performance and operating performance after the equity financing. The major findings from these analysis are the followings. Stock market likes those transactions whose use of proceeds are other than debt repayment. Especially for private placement transactions, the relationship between the issuer and the underwriting shareholder is also very important. Both the short time stock price reaction and long term stock price performance are well off where there is a strategic synergy between those two stakeholders.