| The stock market is an important component of securities market in China and one of the most important functions of the stock market is the optimal allocation of capital resources. The stock market provides a financing platform for listed companies and also provides a investment platform the investment benefit for the general investors in China. Since the establishment of the stock market, the listed companies in China have raised large amounts of capital through initial public offering, allotment of shares and additional issue. The listed companies in China are in the form of project to raise funds from the stock market and the program must be approved to projects for investment. This system is one of the stock market financing systems which meet the development needs of China’s, market economy resource allocation during China’s special transition period. This system is characteristic of the financing system in China, in which the listed companies are in the form of investment projects to raise capital, manage fund and strictly limit the purpose of using the changing financial system.Under the background of this project type equity financing system, the projects that raised funds are invested are the important investment projects after a long period of time of the company listed. And these projects will occupy a large number of resources of companies, thus they will largely affect the enterprise value of the listed companies. Special financing system on China’s stock market is the system background of the research in this paper.Under the project type stock financing system, our country has appeared the Chinese characteristic of the problem which was the change of raised money in listed companies. Our companies frequently change raised money over a period of time after the IPO. Behavior of change raised money is not in accordance with the relevant commitment to invest raised capital on the agreed investment behavior after the public offering of stock financing o in listed companies. From2001to2005listed companies have changed raised money at rates as high as45.9%, during the period of three years after IPO. The China securities regulatory commission and Shenzhen stock exchange have issued special documents to regulate the behavior of listed companies to change raised money. So regulators attach great importance to the listed company to change raised funds. However from the perspective of the company’s performance analysis this issue in literature is less, the existing research conclusions are also split.Based on China’s securities market characteristic of project equity financing system and the increasingly frequent changes raised money of listed companies, this paper is the empirical analysis of relationship between the change of IPO raised money and company’s operating performance. Then from the perspective of corporate performance, the paper analyzes the real motives of the frequent change of raised money. This article main research questions are as follows. Listed companies operating performance before and after "suddenly turn hostile" whether is one of the important influencing factors of change IPO raised money; Change raised money whether significantly impact business performance; investment project relevance to the company’s main business whether have a significant impact on the company. The specific arrangement is as follows.The first part is the introduction of this article. This part mainly introduced this article research background, research significance, research ideas and methods, and briefly introduced the research content. The author believed that of the empirical research between the change of IPO raised funds and business performance will help to identify the real motives change behavior and effects of change.The second part is the literature review. This part mainly discussed the domestic and foreign literature about change of raised money, and found the starting point of this topic. Based on foreign rare study of the problem, this part mainly generalized the literatures at home. This party is mainly from the motive of the listed company to change the raised money, influence factors and change behavior of raised money impact on company performance and the service efficiency of funds and the market reaction of change behavior of raised money.The third part is the theoretical analysis. This part summarized two change motivation of the change behavior. Since then, this paper reviewed the information asymmetry theory and principal-agent theory, the two theories as the theoretical basis of this article. There is information asymmetry between corporate stakeholders, so relatively few information related to the interests of people concerned about the motivation and reason of the change raised funds.The fourth part is empirical analysis. This part collected the IPO companies from2001to2005as research objects, collected before and after IPO, before and after the change of operating performance indicators, and put forward the three hypotheses to analyze the relationship between business performance and the change behavior of the IPO raised money.The fifth part is the research conclusion, Suggestions and deficiencies. This part induced and summarized the research results of this paper, then according to the empirical results put forward some suggestions.Through empirical research, this paper got the following three main conclusions.First,"suddenly turn hostile" of IPO before and after listed companies operating performance dramatically influence change behavior. IPO before and after performance difference is greater, the "suddenly turn hostile" the greater. The listed companies are the more likely to change the IPO raised funds. An average of three years the monetary funds to total assets ratio preceding IPO are1%significantly correlated to the change of the IPO raised money. Before IPO cash is so much, companies again through the initial public offering to raise money. This shows that the IPO may be to finance and finance, not really need funds, the prospectus in the proposed investment project is false. Therefore, listed companies that changed the raised fund are not all for good motivation to change funds.Second, the change behavior of listed companies and change before and after performance differences were10%significant negative correlation; the change behavior and ratios of change before and after performance differences were5%significant negative correlation. Although the significance level of between change behavior and operating performances is not too high, overall that change behavior can improve the long-term operating performance of listed company after the change.Third, the projects that are related to the company’s main business can significantly affect operating performance difference of before and after the change. This shows that project which is related to main business can improve the company’s operating performance after change. |
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