Review of research on private placements of equity and assets-injecting

This paper is a systematic review on private placements of equity covering the literature both abroad and domestic, including three aspects: theory illustration of private placements of equity's discount, influencing factors of discount and its announcement effect, tunneling in private placements of equity. Especially pay close attention to assets-injecting of PPE. Through review, we discover that information asymmetry theory, control right theory and chance window theory are fit to illustrate the practice of China's PPE. The main influencing factors of discount is the identity of shareholders, and market quotations, investor's mood will also affect discount. PPE has positive announcement effect in short window of event, while its long announcement effect is not ideal. PPE is gradually turning to be a potential way of tunnel of control shareholders and its related party. assets-injecting of PPE has become the new hot topic of the stock market. There are both sustaining and tunneling views of control shareholder's assets-injecting from the literatures. From the review, this paper finally point out the orientation of following research.