Performance Changes Study After The Equity Financing Of Listed High-Tech Enterprises In China

Science and technology are primary productive forces. Now, scientific andtechnological progress has become the greatest force in promoting economicdevelopment in the world. In China, as pilot pillar industries, the high-tech industriesstrive to promote technical progress of enterprises, which plays a crucial role toenhance China’s capability of independent innovation, industrial structure adjustmentand transformation of economic development. With strong government support, thenumber of high-tech enterprises is increasing year by year. High-tech enterpriseslisted on the Main Board have increased these years. These enterprises are theindustry leading enterprises of the field that they belong to. There are a lot of R&Dpersonnel, advanced technology and equipment in the enterprise and they makecertain economic benefits of scale for technology research and development. Now,most of the listing of enterprises use equity financing to raise development funds. Dueto higher cost of equity capital and capital market development in China is not perfect,performance development trend of these enterprises are worrying.In order to study the performance changes of high-tech companies conductingequity financing,22high-tech enterprises listed on the main board in Shanghai andShenzhen are selected as sample enterprises and these enterprises equity financing in2008conducted equity financing in2008. Annual Financial data of all enterprises in2007–2010combined with EVA, the DEA method are used to analyze efficiency andperformance of22enterprises. The findings performance and efficiency of mostsample corporate show a downward trend. In the subsequent analysis, using thecomprehensive evaluation of the clustering performance of the business, theperformance of13companies showed the downward trend, accounting for about59percent, only9corporate performances on the rise, only41%of the total sample.The evaluation results from the article shows that performance evaluation resultsof listed high-tech enterprise is objective, truthful, comprehensive and integrated byusing EVA and DEA methods. EVA and DEA methods can be widely used in thefields of relative performance evaluation of high-tech enterprises. Research results aremeaning to improve the all aspects of the listed high-tech enterprises developing inthe future. To stock market investors the research provides methods and study ideasduring the stock investment decision-making.