Study On Equity Financing And Seasoned Equity Offering Of Small-medium Enterprise

The Small-medium enterprise (SME) is acting more and more important role in our country national economy, and gradually forms a new economical point of growth. But the fund they obtain occupies is less than 20% proportion of the financial resources, and is extremely asymmetrical compare to the contribution which they make to the national economy development. Our country's SME is like to other countries', generally existing capital financing gap and debt financing gap, both equity financing and debt financing are facing great difficulty, and enterprise's innovation especially enterprise's new product researching, producing and developing is difficult to impel, so financing is bottleneck throughout SME's growth and development. In recent years, although the central government and local governments at all levels have formulated some support policy successively, the problem still has not been solved fundamentally. On this background, it is already very essential to establish and perfect a financing system which oriented to SME.On the one hand, SME's operating scale is comparable smaller, operating uncertainty is greater, gaining debt financing cost is higher; On the other hand, SME's characteristics of high growth and intense market competition and so on, needs fund support extremely. Especially the science and technology SME during in the imbark growth period, even more requests equity financing to support enterprise's growth opportunity and to solve investment insufficient problem. The practice proved that, equity financing is an optimal financing way to guarantee and satisfy SME's fund demand for characteristics of growth and innovating; Moreover, carrying on the following seasoned equity offering namely right offering and public offering also has unusual function to the listed SME's developing and strengthening. Whether can raise equity capital which suits SME's innovating and developing according to the fund demand characteristics of different development phase, namely that enterprise's exterior equity financing demand satisfied degree, also becomes a great restriction factor of the SME development.Based on the above judgment, at first, this paper takes enterprise's financing theory as instruction, linking to our country SME's development reality closely, comprehensively analyzes the SME financing demand phase characteristics, fund supplies source, fund supply and demand gap's present situation, and problem existing in SME's financing aspect. Next, on this foundation, using SME and small listed company's statistical data, combining the theory with practice, expounds systematically angel capital financing, venture capital financing, public offering financing and so on in SME's equity financing superiority status, behavior way and influence function, and have carried on case analysis and empirical analysis on the impacting factors of SME listed company's capital structure and equity financing. Then, this paper according to the exterior seasoned equity offering theory, has analyzed and discussed our country seasoned equity offering's characteristics, present situation, existing problem and its reasons, and made empirical analyzed on issuing method and operating performance of SME's seasoned equity offering. Finally, proposes certain solution thinking and countermeasures.Main researching content of this paper, summarizes as follows:Part I The fund demand phase characteristics of our country SME, as well as fund supply way type reflected by these characteristics. The paper has analyzed different development phase's fund demand of SME especially the science and technology SME, which including in imbark stage, early growth stage, accelerated growth stage, stable growth stage, mature stage and so on. Different development phase has different fund demand characteristics, as well as request different fund supplies.Part II Our country SME's fund supply channel and way, among which equity financing can provide essential fund guarantee for the specific growth cycle of SME. At first, expounds respectively the characteristics and present situation of our country SME's fund supply channel, which including internal accumulation, commercial credit, bank credit loan, bonds issuing, government finance supporting and so on. Then, through case analysis and statistical analysis, has revealed the financing gap between the SME's fund supply and demand. Finally, focus on analyzing the relationship between equity financing and SME's growth cycle, as a result, it demonstrated that equity financing can provide essential fund guarantee for the specific growth cycle of SME.Part III The source and form of our country SME's equity offering and seasoned equity offering. A series of equity financing of SME, including angel capital financing, venture capital financing, initial public offerings and its following seasoned equity offering financing and so on, acting as a fund supplying relay process. The paper expounds the above equity financing form's connotation and characteristics separately, analyzes their superiority status, financing behavior and impact function respectively in SME's financing, then has testified them unifying with the practice case evidence.Part IV Empirical analyses of the SME listed company's capital structure and equity financing impacting factors, seasoned equity offering's issuing method, and seasoned equity offering's operating performance. At first, this paper has empirically analyzed impacting factors of the SME listed company's capital structure and equity financing, and has done further analyses on some sample enterprise which have carried on the following seasoned equity offering. Next, has analyzed and discussed characteristics, present situation, existing problems and reasons of our country SME listed company's seasoned equity offering's two kinds of issue method including rights offering and public offering. Then has made theory and empirical research on SME listed company's seasoned equity offering's operating performance, in which having differentiated companies into SME and big enterprise listed company, carried on comparison analysis of their operating performance changing after they having seasoned equity offering. The research indicates that our country's SME's equity financing existences great relevance with enterprise's scale, growth, profitability, asset mortgage value and so on. The SME which can carry on seasoned equity offering in the near future after initial public offering, nearly all have high growth and strong profitability. Moreover, most of our country's SMEs no matter having gone to be listed on the market or not, the special demand for external equity financing which is decided by the high growth characteristic, although obtained certain manifesting, still have not be satisfied in reality under the restraint, supervising and managing on the external equity financing by our country's security market; Namely that our country still has great potentiality for developing exterior equity financing of SME. On the other hand, although SME listed company has existed problem of operating performance dropping, lower efficiency and so on, the advantage still greatly exceed shortcomings of our country supporting small listed company to carry on seasoned equity offering.Part V Puts forward some thinking and countermeasures which improve equity financing and seasoned equity offering of SME. based on the above research foundation, comparing and modeling the success experience of international SME's equity financing and seasoned equity offering , proposes some relevant countermeasures and suggestions such as: Appropriately develop angel capital, venture capital market as well as multi-level capital market which is convenient for our country's SME's equity financing and seasoned equity offering; Suitably adjust the government policy of SME's equity financing and seasoned equity offering; gradually perfect SME's government structure and so on.