Research On The Behavior Of Altering The Use Of IPO Proceeds By Listed Companies

The process of using the initial public offering proceeds is the core and basic position in the market behavior. Only to ensure the healthy development of financing and investment, the market can achieve the optimal allocation of resources, adjust the industrial structure and spread the risk. However, the Chinese listed companies in the IPO funds raised in the course, there is a special phenomenon:large listed companies frequently change the use of proceeds. What motives is the behavior? Does the behavior in order to improve business performance, or obtain malicious personal gain? What factors are the influence this behavior? Whether does the behavior enhance the enterprise value or mean a sign of declining performance of the company? How to protect those decisions which follow the market environment and enhance corporate performance, against the behavior only for the interests of small shareholders?Around the above problems, this thesis follows the key of "motivation-action-effect" and is organized as follows:Chapter 1, introduction. This chapter introduces the research background, meaning and purpose, research methods and frameworks and content arrangement and innovation for the recapitulate of the full text.Chapter 2, literature review and comments. Firstly, we review and comment on the foreign research literature, enterprise investment as the main clue of the research, mainly including asymmetric information, principal-agent and behavioral corporate finance theory. Secondly, the alteration of financing capital related research are summarized and evaluated, which covers change behavior motivation, effect, regulationpolicy suggestion of subject and research methods. This paper argues that the different types of change behavior driven by different motivations. For example, the motive of foreign investment may be related party transactions, major shareholders occupation-related, and the motive of the main operating investment may be related investment opportunities and investment decisions. In addition, there are worthy of our in-depth discussion of behavioral effect, regulatory restrictions and so on. The purpose of this chapter is to review the related literature, propose further research directions and the establishment of a research topic of this paper.Chapter 3, the alteration of financing capital theory analysis. This chapter is based on the new classical economics MM theory as a starting point, the non-symmetry information company, governance structure, institutional factors and other financial theory gradually into the analysis framework. About the institutional factors, we find there is the contradiction between supply and demand, which is financing system based on projects and the real equity financing needs of state-owned enterprises. Although many aspects of the behavior have included the scope of regulation, the regulatory mechanism is weakened reflecting in penalties and litigation mechanisms. In brief, the main purpose of this chapter is to make people have a better understanding of the nature of the alteration of financing capital investment, financing environment, the enterprise governance structure, China unique project stockfinancing system and the motivation of change behaviour. This chapter is empirical and theoretical basis of the phenomenon of description.Chapter 4, characteristic of alteration of financing capital. This chapter first defines the concept of the alteration behaviour and analyzes the overall situation. And then the chapter describes the number, frequency and extent of the alteration behavior. It is divided into different stages and background in order to better understand this behavior. With analyzing the characteristics of behavior, we find that the companies of traditional manufacturing industry happen frequently. The numer of companies is relative their share of the total number of listed companies. As to the reason of alteration behavior, listed companies affirm various reasons in the announcement. We sum up into four kinds, of which more than 60% of listed companies believed to be caused by changes in the external market environment. It will be described in the following sections about what exists behind these kind of complex and deep-seated causes and how the alteration behavior affects.Chapter 5, factors affecting change behavior. Based on the theory and characteristics above, we propose research hypothesis and construct a model with the method of PCA. By the regression of the overall sample and packet analysis of samples, we analyze institutional environment and corporate governance factors to affect these factors of the change behavior.We find the internal market environment and ownership structure directly influence the change of behavior and effective market environment, which reduces the probability of the behavior through the reasonable ownership structure. Comparing with listed companies of market segment, we find the size of the assets, the management characteristics and economic growth significantly affect small board listed company. The behavior of listed company in main board is affected more by market environment, asset size, profitability and less impact on regional economic growth. The behavior of state-owned listing corporation is indirectly affected by external environment, which government intervention can only play a role through the external market weak. When the burden of local government becomes more, it may crowd out the law of change of the binding and increase the probability to change. For non-state owned listing corporation, government interventions only rely on the effective marketinternal environment, that is to say, when the area resource endowment, investment environment and market capacity development is poor, local government thinks hard to reduce intervention of enterprises and increase the probability to change. Whether this factors can bring the performance of the company, it will be examined in the sixth chapter.Chapter 6, the efficiency and influencing factors of the alteration behavior. We firstly defines the standard of evaluation and use DEA and Kernel Density model to consider the corporate performance. According to the characteristics of the behavior, plate market characteristics and equity corporate governance, the sample companies are divided into groups to verify the change of performance due to the behavior. By multivariate linear regression, we analyze financing project effectiveness, negative correlation between alteration type, ownership concentration and corporate performance.Chapter 7, case study about malicious change. As an example of Keyuan Group to raise funds under the control of major shareholders, we analyze the motivation events, the operating results of listed companies and rights protection of minority shareholders. It tells us this kind of malicious behavior may interweave with other irregularities which of characteristic is complex and hidden. This behavior will make more loss for the enterprise if it is not promptly stopped. Because of the imperfect laws and regulations, when the interests of small shareholders are seized, their legal action will frequently blocked and legitimate interests cannot be effectively protected. When there is a serious defect governance, the company’s internal control system exists nominally. There are a lot of internal collusion case with relaxing regulation on the violating party punishment,which makes the company’s minority shareholders suffer huge losses, and even affects the normal order of the securities market. The above phenomenon should arouse widespread attention in the community.Chapter 8, full summary and research prospects. This chapter first summarizes the conclusions of the dissertation. Then some innovative works that the dissertation has done are summarized and some deficiencies are also pointed out, which can tell the right directions for further improvement in future research.