Research On Efficiency Of Fund-raising Of Shandong Listed Companies

Shandong is a large province of securities, which the number of listed companies and amount of fund-raising is in the top place of China. In recent years, after merger and reorganization, the weak companies gradually walk on the healthier development road. "Strong is always be strong, the weak is turning well" that the situation gradually formed, the majority of companies are provided with the conditions of refinancing. Besides, the listed reserve is rich in resources, many middle and small enterprises appears to having a good momentum of development. With the accelerated pace of the multi-layer capital market construction, there will be more and more Shandong enterprises rely on the capital market to further enhance their competitive abilities. In terms of listed companies, it is of great significance to find how to learn from the lessons of using raise funds in the past, regulate the use of funds raised, enhance the core competitiveness and profitability of the enterprises, seize the opportunity in the new round development of the capital market and make companies further better. On the other hand, in terms of the securities regulatory departments, it has important practical significance to find how to strengthen monitoring of listed companies fund-raising in the era of worldwide circulation.In this paper, a lot of data and the method of the combination of qualitative and quantitative are adopted and some related issues on using raise fund of Shandong province listed companies are researched for the first time. Firstly, this paper concluded the Shandong province listed company and its characteristics of financing. And then it did the empirical analysis about the using efficiency of the raise funds of listed companies. Following it summed up the problems and reasons during using the raise funds. Finally, it put forward to some relative recommendations on improving using efficiency of the raise funds. This paper focuses on the empirical analysis of the efficiency of the use of funds raised and selects the sample of 46 firms who had raised funds from 2000 to 2003, using comparative analysis and operational indicators chart analysis, selecting the targets that reflecting the size and profitability to compare last year, this year, next year and the year after next year, analyzing the using efficiency of raise funds from different perspectives.The empirical results show that: the using efficiency of the raise funds of Shandong listed companies is good, fund-raising play an important role in the development of the company's main business and the improvement of the core competitive abilities of the companies. But the growth of profitability failed to keep profits on equity expansion and the profitability of assets declined; the using efficiency of company raise funds polarized; using efficiency of funds-raising and fund-raising methods correlation is not strong; fund-raising using efficiency had a strong correlation with the fund-raising mode. Scale effects would take place when the listed companies achieved a certain level of scale, raise funds would be the accelerator of continuing its constant development. The raise funds were invested in the company's main business, which played an important role in nurturing the competitiveness of the companies. It is significantly higher than the efficiency of the fund-raising were invested to diversified operations; whether change the invest direction of fund-raising had a strong correlation with the efficient use of fund-raising, changing fund-raising invest direction had an adverse impact on the efficient use of the fund-raising.