The Research Of Influence And Strategy About Changi Ng Investment Direction After Raise Funds Of Listed Co Mpany

Chinese security market environment is complex. Affected by many factors, the system of listed company also has problems. The issue that change investment direction after raise funds becomes more and more prominent, it has a major impact on the sound development of security market, the performance of listed corporation, the confidence and interest of investors. In our country, there are some investment behaviors found in many listed companies, such as blindly finance for money, maliciously change investment direction in order to project for the project. These problems have became prominent in China’s stock market, and have received extensive attention from supervision department, investor and academia. This paper reviews and summarizes the study about changing investment direction of raised fund of listed company at home and abroad. On the basis of this, and using the related theory of financial management, this article analyzes the present situation of above-mentioned issue, and introduces where the funds have gone:invest new project, buy the major shareholder’s assets, use to trust management for listed corporation, add liquidity, buy and sell shares. The paper also states the causes of this change, for example, the major change in the national industrial policy, the intervention from local government, the examination and approval so long that miss investment opportunities, the imperfect system of securities market, the low investment decision-making ability, the unreasonable ownership structure of listed corporation, the excessive motivation and lack of constraint in management. It puts forward a series of the impacts caused by the change, e.g. effectively paly the function of stock market, hinder regulating securities market operation and result in insider trade and related transaction, lead to investment entities virtual and result in bubble economy, cause the stock price to change, influence the value growth of listed company, make against to the long-term stable development of listed company, affect the confidence of investors, harm the interest of investors. It demonstrates the rationality of the hypothesis and utilizes multiple Logisti regression model to analyze the probability of the change.With the aid of statistical analysis tool, this paper draws the following conclusion:this probability is negatively correlated with the company’s financial status, return-on-asset, company size and the incentive and constraint of key people, meanwhile positively related to the ownership concentration. So this paper proposes the supervision and self-regulation strategies to this change from four aspects, which are perfecting the market mechanism, shortening the time to raise funds in place, strengthening to supervise the process of using the funds, and improving the governance structure of listed corporation, in order to standardize equity financing, enhance risk control, and promote healthy, stable, sustainable development of Chinese stock market.