Research On The Equity Financing Efficiency Of The Listed Company In China Growth Enterprise Market

GEM （Growth Enterprises Market） officially launched on October30,2009, whichgreatly improved the financing situation of technology-based small and medium high-techenterprises. It aroused public concerns on after the listing, whether the listed companiesutilised raised-funds effectively or achieved the optimal size of output. However, theresearches on the the equity financing efficiency of companies listed on GEM are quitefew, which make this paper has certain theoretical and practical significanceIn this paper, I discussed the feasibility of studing the equity financing efficiencyby Data Envelopment Analysis through reviewing financing efficiency and equityfinancing related papers as well as studing DEA method. Due to the fact that GEM hasjust launched, the relevant data are therefore available which provides certain supportson studing the equity financing efficiency of companies listed on GEM. I alsoestablished a DEA model based on equity financing efficiency, selected the netproceeds, ownership concentration, asset-liability ratio as input indicators, chose therate of return on net assets, the main business revenue growth, earnings per share index as outputindicators. Then I concluded a DEA evaluation on equity financing efficiency by studing the50listed companies which were on the China GEM by the day of January31,2010. Ialso obtained relevant data of the companies listed on GEM equity financing efficiencyevaluation results through DEAP2.1software and analised returns to scale status of thecompanies listed on GEM, the efficiency of relevant factors and equity financing, tradefinancing efficiency variance by returns to scale analysis, univariate analysis, industryanalysis and projection analysis.At last, it came to the conclusion that equity financingof Chinese GEM companies is pretty low, accordingly,suggested relevantrecommendations.