This paper examines whether there is a change in firms’ idiosyncratic volatility following the announcement of private equity placements, and studies the relationship between controlling shareholders and the discount of the placement as well as stock returns. The results show firstly that idiosyncratic volatility does not change significantly following the announcement using one-year event window. Secondly, controlling shareholders do not enjoy higher discount in the placement comparing with outsiders. Besides, the discount reacts differently to the deviation of control rights from cash flow rights under different dominant types of investors. Discount reacts positively to the deviation when controlling shareholders are dominant investors, while it reacts negatively when outsiders are the dominant type. Thirdly, one-year cumulative abnormal return is significantly positive in which shares offered in the placement are sold to controlling shareholders for more than 50% or to one outsider for more than 5% of shares outstanding.