| With the maturity of the mainland of Chinese stock market, the number of listed companies has been expanding. As the primary means of financing, IPO is playing an important role. However, many problems and shortcomings of capital market are exposed to the public. And investment changes of IPO' fund-raising is quite serious. The type of project-financing in China is different from foreign countries, so the problem is unique. The paper based on the actual Chinese stock market, study the issues of investment changes.The paper collects 849 listed companies which raised funds by public offering from 1998 to 2007 as samples, and to analysis the usage of the funds between 1998 and 2010. The statistic shows that 402 listed companies in 849 changed the promised fund usage. The problem is very serious. The paper makes statistics about the amount of fund, industry characteristics and the specific reasons of the changes in fund-raising, and analysis the subjective reasons and the objective reasons of the changing motivation. Secondly, the result of market reaction is obtained by the event study which could distinguish the motivations. Then, putting index of listed companies and the changing motivations into the Logistic regression model, the result shows that the index capital maintenance-appreciation ratio and sales-cash ratio are negatively correlated with malicious motivation,and Largest shareholding ratio and asset-liability ratio are positively correlated with malicious motivation. Finally, based on results, the paper brings out the suggestions to regulate the usage of raised funds. The approvers should improve the IPO system and the efficiency of approval; the government should publish industry programs, guide investment, standardize project decision-making and improve financing quality; the regulars should increase supervision and perfect regulatory regime; the investors should enhance investment awareness and maintain investment interests. |
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