Study On The Issue Of Raised Funds Left Unused Of Listed Companies In China

The raised funds left unused of listed companies is a special phenomenon in China's stock market, it shows the low efficiency of the raised funds. It not only damage the investors' interests seriously, but also restrict the function of resource allocation performs in the stock market and affects the stock market developed steady and healthy. Thought summarizing and absorbing the relevant achievements in the research field, we find that the scholars of raised funds left unused focused on issues associated with the investment alteration, overinvestment and underinvestment. Therefore, this article based on entrust-agency mechanism, the loss of reputation and information economics theory, builds a theoretical model, and then finds out that the different ways to encourage manager may lead to underinvestment, overinvestment and raised funds left unused. At the same time, the enterprise's reputation and long-term effectiveness of the manager's incentive is the key to these three phenomena, and the perfecting on information disclosure system is a prerequisite to the improving reputation factors. Finally, to solve this problem, the article gives some suggestions on perfecting on commissioning mechanisms, information disclosure mechanisms, legal mechanisms and etc.