An Empiriacl Study On The Relationship Between Ipo Super Offering And Insufficent Investment Of China Sme Board Enterprise

The super offering is a unique phenomenon in the IPO market of China. Since the resumption of China IPO from2009, the new listed companies have frequently appeared super offering phenomenon, which has caught the attention of all walks of life. Investment decision is one of the three major policies of financial management in a company, which is an important means to the allocation of companies’resources. At the same time, it can help a company to maximize its value. However, does the investment decision of a company be a good way to the use of excess funds raised? What is the relationship between super offering and corporate investment decision? Will super offering causes the low efficiency of investment? All of these are something interesting to research. In view of this, this article explanatorily puts attention to the relationship between China’s SME Board Companies’IPO super offering and insufficient investment, which certainly has some theory significance and the practical significance.This paper takes the companies, which listed in the SME Board of China Shenzhen Stock Exchange and IPO before the end of December31,2008, as samples. We read lots of domestic and foreign literature and use the principal-agent theory and the theory of asymmetric information to analyze the problem of this paper. Then we have an empirical study on IPO super offering and insufficient investment. First of all, we derive the Sample Firms investment in accordance with the improved Richardson (2006) model; Secondly, we use a Logistic regression analysis to study on whether the super offering has anything to do with insufficient investment; Furthermore, we use a Logistic regression analysis to study on the relationship between on IPO super offering’s severity and insufficient investment.According to the above research, this paper draws the following conclusions:(1) in our country, small and medium-sized enterprise board companies invest less after IPO. According to the residual result analysis of the improved Richardson (2006) models, the rate of insufficient investment accounts for63.33%, which indicates that insufficient investment is more serious in China’s small and medium enterprise;(2) as to our country’s small and medium-sized enterprise, IPO super offering situation and insufficient investment is in positive correlation, indicating that the presence of excess funds raised makes the company more susceptible to insufficient investment behavior. As to the super offering’s severity, whether by median divided or average division, is in positive correlation to insufficient investment, suggesting that the more serious the super offering is, the more easily the company insufficient investment is to happen. As a result, the existence of super offering indeed deterioration the efficiency of small and medium enterprises’investment. Finally, this paper attempts to put forward policy suggestions to the regulatory departments, enterprises and investors, hoping to make contribution to the standardization of China’s IPO market, reducing the IPO super offering situations and improving our capital market efficiency in the use of funds. At the same time, this paper suggests that relevant departments should encourage the small and medium-sized enterprises in China to do more reasonable investment, so that the small and medium-sized enterprises can develop healthily and rapidly.