An Emperical Research On IPO Proceed Usage Changing Of Listed Company In China

Through IPO the companies may collect necessary funds for development. Under the background of the project-financing system, the listed companies should invest their IPO’s raised fund in the project according to the previous plan. However, in recent years, lots of listed companies change IPO proceed usage continually after financing. It is not only the problem of Investment and Financing Decisions of the listed companies, but also has business with special market economic system and securities market’s Supervisory System in China. Firstly This phenomenon is harmful for the development of the companies and lots of investors’interests. Then it weakens the role of resources allocation function of stock market and distorts the stability and healthy development of Chinese market economy.Under the background described above, the paper analyzed the present status and reasons of IPO proceed usage changing.It mainly used methods of normative analysis and empirical testing. From the angel of relative financing scale the paper made an empirical research on motive and effect on IPO proceed usage changing of the listed companies. Lastly it put some suggestions. The research has important significance to improving the efficiency of the financing capital’s use and the development of the listed companies. Furthermore, It has some guiding signification on enhancing the credibility level and improving the healthy development of the securities market.The paper contains several parts.Firstly, the paper is to systematic study on the basis of reviewing the existing literatures on the proceed usage changing at home and abroad. Then it Introduced the relevant theory to the research of the corporate behavior.Secondly,it introduced the definition of IPO proceed usage changing, reviewed the development of China’s governance system on the raising money, analyzed the real situation of Chinese Listed companies’IPO proceed usage changing and the factors that lead these companies invest their raised fund not according to the plan.Thirdly, from the angel of relative financing scale, the paper made an empirical research on motive and effect on the behavior. The results show that the whole changing behavior is of good motivation, for the IPO proceed usage changing can improve future performance. The probability of IPO proceed usage changing is positively correlated with relative financing scale of the company. For those companies which have changed IPO proceed usage, the performance difference is negatively correlated with the previous relative financing scale.Finally, according to the made conclusion, the paper put some suggestions, such as perfecting related laws and the regulations, strengthening the management and governance on the raising funds, strengthening information disclosure, and improving the internal governance structure of the listed companies.