Motivations of Companies to conduct PPE

The order contains two steps: 1) In the first step (Use five theories to explain the motivations of companies to conduct PPE), we need to achieve the methodology part. Then, we will need to describe the methodologies used by previous authors comment them and describe clearly our methodology. Analyse our data, state the limitations of our methodology and provide some recommendations. 2) The Second step is also the motivations of companies to conduct PPE, but here it will focus on the use of proceeds ie the destination of raised amount. Then here we will link the use of PPE in the changes of some accounting variables We need the methodologies used by previous authors and state clearly our methodology. Analyse the data and state the limits of our methodology. Then, provide some recommendations. The last part is to summarize the key results and the implications in management practice.

Notes: For every company, we collected data from 2004 to 2016. Therefore, there are some companies without data in some years depending to the listing data of those companies.
PPE data began in 2006 in China. Then, we considered the PPE data from 2006 to 2015.
There some companies who have conducted PPE many times. For every PPE, we defined: the announcement date, the purpose of PPE, Investors evolved in the PPE, Major shareholders (evolved or not, method), and the Resold Lock-in periods.
Note that if major shareholder is the investor than the look in period is 3 years. For other, it is one year.
In the green part, I provided data required for the first part.
The yellow part is other variables useful for the second part.
1 Plan of the work:
1 Motivations of companies to conduct PPE using the characteristics of issuing companies before the placements (Five theories will be used to explain these motivations)
2 Motivations of companies to conduct PPE using the characteristics of issuing companies after the placements or the motivations behind the use of proceeds from PPE with the change of some accounting variables
2 Delimitation of the work:
1 Motivations of companies to conduct PPE using the characteristics of issuing companies before the placements
Introduction: OK
Literature and Hypotheses: OK
Data and Methodology:
Cite the methodologies used by previous authors in a table:
Authors Title Methodology used Our own Comments

Describe clearly our methodology, Analyze our data following this methodology. Results. Limit of our methodology, and Recommendations.
2 Motivations of companies to conduct PPE using the characteristics of issuing companies after the placements
Some empirical works found evidence between the use of proceeds from SEOs and the motivations of companies to conduct SEOs, including: (Kim & Weibach, 2008), (Jeanneret, 2005), (Autore, Bray, & Peterson, 2009), (Walker & Yost, 2008), (Fu, 2010), (Huang, 2010). (Kim & Weibach, 2008) investigate the impact of the use of proceeds from SEOs on companies’ investment, debt prepayment and cash holding. The sample contains 13,142 SEOs from 38 countries during the period from 1990 to 2003. They found evidence that the uses of proceeds from SEOs are mostly used in investment and cash holding. No evidence for debt prepayment. For cash holding purpose, higher valuation before SEOs leads to a higher cash holding increase after the placements. Investments and information asymmetry have been found to be the motivations of the use of proceeds in their sample. (Jeanneret, 2005) in the French market examines 232 rights issues from 1984 to 1998. The uses of proceeds are used for investment and adjust companies’ capital structure. The author did not find any significant share price underperformance after the placement when the use of proceeds was to adjust companies’ capital structure. But, a significant underperformance has been found after the placement when the use of proceeds was to invest in new project. The author finds an over-investment problem, and states that the use of proceeds for over-investment support managers and shareholders agency conflicts. (Autore, Bray, & Peterson, 2009) investigate 880 public offerings in the U.S. market from 1997 to 2003. They classified the use of proceeds into three categories: investment use, debt repayment use, and general corporate use. They find that debt repayment use and general corporate use underperform companies in terms of stock and operating performance after the placement. They qualified debt repayment use and general corporate use as companies do not have profitable investment project, concluded that companies might raise funds for other purposes such as market timing motivation. (Walker & Yost, 2008) investigate the impact of the use of proceeds from SEOs on some accounting variables. The sample contains 438 public offering in the U.S. market from 1997 to 2000. They classified the use of proceeds into three categories: investment use, debt repayment use and general corporate use. The authors show that companies’ investments increase for all three categories after the placement. They show also that companies’ leverage increases even if the use of proceeds is debt repayment use. In comparison to other categories, they found that general corporate use decrease significantly companies cash inflow after the placement. They conclude that the agency conflicts between managers and shareholders motivate the use of proceeds. The impact of companies’ over-investment after SEOs has been investigated by (Fu, 2010) in the U.S. market on a sample of 2,873 SEOs between 1980 and 1999. The author shows that over-investment decrease companies’ operating performance after the placement, and finds evidence supporting the agency conflict between managers and shareholders. (Huang, 2010) found that investments, information asymmetry theory and the agency conflicts motivate the use of proceeds from SEO in China.

Data and Methodology:
Cite the methodologies used by previous authors in a table:
Authors Title Methodology used Our own Comments
Describe clearly our methodology, Analyze our data following this methodology. Results. Limit of our methodology, and Recommendations.
Key Findings for the two parts and the implications in management practice.

We need to cite the methodologies used by previous authors, limit of their methods and describe clearly our methodology. Limit of our methodology and analyze the data according to our methodology. Results and some recommendations about the methodology.
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NB: Last time you said that you will use STATA to analyze the data. Then, I will need the Stata code for the work. Because I will reproduce the results in presence of my professor.
Performances of issuing companies in terms of stocks and operating performances will be another order.

Sample Solution

ACED ESSAYS