A Research On Excessive Raised Funds Of Listed Companies In GEM

Growing enterprises market (GEM) expected much launched On October 30th, 2009. From then on, GEM has been operating smoothly. But there are still some questions, one of which is excessive raised funds of listed companies in GEM. Now, it is a widespread phenomenon, and the use of excessive raised funds is quite arbitrary and indefinite, which affected the listed companies, investors and the society. Therefore, we should attach great importance to the question of excessive raised funds of listed companies in GEM! Based on this, this paper chooses this question for research.First, this paper analyzed the theoretical basis of research on excessive raised funds of listed companies in GEM, which included financing theory and corporate governance theory. Secondly, this paper studied the status quo and effects on listed companies, investors and the society, of excessive raised funds, which would go against long-term development of enterprises, impair the interest of investors, waste social resources, and affect our country's industrial structure adjustment and the sustainable development of macro economy. Thirdly, based on financing theory and corporate governance theory, this paper put emphasis on the cause of excessive raised funds, which mainly included lower cost of equity financing, imperfect IPO pricing mechanism, inefficient IPO examining mechanism, absence of delisting mechanism; lack of substantial internal governance structure, absence of supervisory restraint mechanism, high dependence of personal small capital fund and irrational investors. Finally, in view of the cause, this paper put forward to some proposals, included improving GEM mechanism, such as IPO pricing mechanism,market maker system and delisting mechanism; perfecting corporate internal and external governance and internal control mechanism; fostering rational investors, and so on. Above all, only when market subjects cooperate and work in the GEM together, we will prevent excessive raised funds of listed companies in GEM fundamentally, and promote the development of GEM healthily and sustainable.