Private placement of assets-injecting and behavior option of the majority shareholders

This paper focus on the behavior option of majority stockholders in private placement of assets-injecting. This research based on the market timing theory. I find that the majority stockholders prefer to issue shares and inject assets when the benchmark price under the intrinsic value and the company's earnings before issue lower than the overall industry earnings. In order to manipulate the benchmark price, they will use the way of choosing pricing base day, opposite earning management and delist. Except that, I also discover that the majority stockholders prefer to issue stocks and inject assets under the background of bull market expectation and in accordance with equity division reform. But the conclusions above also should be verified by empirical research.