Research On Efficiency Of Equity Fund Raised By Listed Companies In Hubei Province

Before the1990s, the external financing of enterprises in our country mainly relies on bank credit. With the development of stock markets in1990s, equity financing has become an important way of external financing in China's listed companies. Generally speaking, China's securities market makes a difference in resource allocation and financing. Allocation of resources is the basic purpose of the establishment of the stock market, investors through the purchase of shares in the hands of the transfer of funds to the funding needs hands, while at the same time the funding needs to be in the hands of the stock to sell access to funds, and investment, the money capital into the actual production process, into industrial capital. The financing function of listed companies has opened up a low-cost financing, listed companies can collect a lot of idle funds together through the issuance of stock for their own long-term capital, long-term development. But financing is just the first step of operation; the key is the use of integration into the funds. The use of corporate funds related to the growth of corporate profitability and shareholders' equity, and ultimately affects the value of the business. At the same time, corporate profitability, the growth of shareholders' equity, the enhancement of corporate value is a reflection of the efficiency of the use of funds. Only getting the high efficiency in the use of funds, the performance of enterprises can be greatly improved. At the same time use efficiency of listed companies raise capital is also related to the long-term development of the company, to the company's reputation and image.With the development of China's capital market increasingly mature, stock market barometer of the economy functions has become increasingly prominent, listed companies of a region will reflect the characteristics and strength of the regional economy. Although the number of listed companies in Hubei Province exist a certain gap comparing with the developed areas, the number and the scale of listed companies in Hubei Province in the past20years has greatly changed. Important strategic point and the national independent innovation demonstration zone is located Hubei and Wuhan of central China, the geographical advantage of the thoroughfare of nine provinces and the country's leading scientific and technological innovation resources, is bound to have a significant role in promoting Hubei's economy. With the rapid promotion of regional economic strength, the Hubei listed company's prospects will be brighter. Facing the external market environment, more and more listed companies will raise funds through the stock market, and the use of the funds will play a great role in the long-term development of the listed companies, the thesis analyzes the equity of listed companies in Hubei Province efficiency in the use of the funds raised, in order to improve efficiency in the use of equity to raise funds as a reference.This thesis mainly divided into three parts:The first part of the thesis research the theory part. First introduced the thesis background, purpose and significance, and at home and abroad in the relevant field of the second section describes a basic form of the listed company equity financing, finance theory, the definition of the concept of efficient use of funds for later bedding.The second part is the empirical part of research papers. Equity financing status quo of the listed company in Hubei Province was analyzed from a practical point of view, understanding of the major listed company's equity financing and its characters. Then select the appropriate financial indicators, the empirical analysis in accordance with the equity funds raised in different ways Hubei Province during the period2001-2007listed company equity to raise the efficiency of the use of funds.The third part based on empirical analysis of the previous results of Hubei Province, listed companies raise the problems and causes of the use of funds analysis, combined with the actual targeted Hubei Listed Companies proposed to increase to raise the efficiency of the proposed the use of funds.The thesis results show that most of the enterprises listed on the company's operating performance has declined, and only a small part of the business performance has increased after the financing. And even the enhancement of the performance of the company is also focused on the absolute value of indicators such as main operating income, main operating profit on behalf of the company to profitability, earnings per share and return on net assets ratio indicators the overall downward trend.