DEA Method-based Research On The Equity Financing Efficiency Of The Listed High-tech Enterprises In China

Nowadays, high-tech industry has become an important boost to the economicgrowth of various countries. High-tech enterprises are also the major power in oureconomic development, and charged with the important task of leading China’ssustained and rapid economic growth. Compared with general enterprise, high-techenterprises have higher growth potential, their development especially technologicalinnovation requires high financial support, associated with higher higher risk. So it isdifficult to obtain debt funding, and the equity capital become an optimal financialoptions, which becomes a beautiful reason for their equity financing preferences. Onthe other hand, our listed companies have been proven to a low efficiency in equityfinancing. Our concern is: whether the special high-tech enterprises’ equity financingefficiency is still low; whether they can benefit from the equity financing or rationallyuse the equity fund. According to these problems above, the article will study thehigh-tech firms’ equity financing efficiency and give some useful proposals.The paper firstly uses the descriptive statistics and the theoretic verificationmethod to qualitatively describe the current situation of the high-tech enterprises’equity financing; then the text empirically examines the efficiency with the DEAmethod. We choose the IPO firms and equity refinanced companies from all high-techfirms in2007as samples. Then we find that, our high-tech enterprises’ equityfinancing efficiency appears still lowly, and the IPOs’ efficiency is lower than theSEOs (Second Equity Offering). Part of the companies with increasing returns toscale, have relatively low efficiency. It can be due to the insufficient ability ofapplication of funds.Some suggestions for improving the efficiency of high-tech enterprises areprovided after the research. In the macro-environment, strengthening the regulations、systems and supervising of the equity financing, improving the tax incentives ofhigh-tech enterprises’ independent innovation, emphasizing on the development ofdebt capital market. From the high-tech enterprises own, they need to improve thecapability of the fund management and its efficiency, motivate their scientific andtechnical personnel, and cultivate innovative companies, and so on.The specialized study of the equity financing law of high-tech enterprise may enrich and improve the unique groups’ equity financing theory as the research objectconsistent with the financing efficiency of the overall listed companies. The practicalsignificance of this article is: it provides true data and arguments for researching onequity financing efficiency of the high-tech enterprises; it also gives the basis ofhigh-techs’ rational choice of financing method as well as the government’s relatedpolicies.