China's Listed Companies To Raise Funds To Invest In The Change From Investment Decisions

The phenomenon of the domestic listed companies changing the use of proceeds in a large scale has been gain wide attention. The investing trend of the proceeds and its changing are originally the normal behaviors of listed companies. However, as it being a kind of commitment and responsibility the abusive use is abnormal for it breaks the listed companies' promise for the stockholder.The abusive use of proceeds becomes more and more serious, which is not only the reflection of objective factors existed in the stock market but also the subjective factors existed in the listed companies, for example: the inadequate effort in corporate governance, distemperedness of capital structure and the lack of supervision laws due to system limitation.The article focuses on analyzing the factors which impact on the listed companies management investment decision, such as corporate governance, improving the capital structure and disclosing information, feasibility research and so on, which will keep the companies away from investment risk. Some remedies and precautionary measures have been suggested in the article.The analysis of a listed company case is given at the end of the paper.