Empirical analysis of motives of private placement of listed companies

This paper studies how the motives of private offering of additional shares of listed companies affect the performance of listed companies, using listed companies having offered private additional shares from 2005 to 2010 as study sample. This study adopts multivariate logistic regression model to empirically analyze which factors affect the motive of private offering of additional shares. This study, from results of analysis, founds that small scale companies with poor historical performance have stronger motives of private offering of additional shares.