The Research On Use Efficiency Of IPO Raised Fund In China

Initial public offering(IPO for short)has become an important financing methods among chinese companies.However,it is ubiquity that the raised fund is idle and abuse or occupied by the large shareholder.The status goes against the healthy development of the listed companies as well affect the resource allocation function of the security market.The article firstly analyes the affect of agency cost and ownership structure to the use efficiency of the raised fund,and adopt DEA(Data Envelopment Analysis) model and multiple regression model to study the use efficiency of the raised fund and the related influencing factors. Slecting the companies listed in2005-2008in Shanghai and Shenzhen Stock Exchanges as the samples, the author use the net financial capitals、the increase of capital investment and the increase of human capital as the input variables of DEA model and the increasing rate of the main operating profit、the increasing of the main business income、return on equity and Torbin Q as output variables to analys the use efficiency of the raised fund research.Then, the article uses the increasing rate of the main operating profit、return on equity and Torbin Q as the use efficiency of raised fund index to analys the affect of the ownership structure to the use efficiency of the raised fund by constructing multiple regression model.The empirical result shows that:(1)the using of raised fund has not brought the significant improvement to the operating performance and the use efficiency of the raised fund is not high;.(2)The use efficiency of the raised fund has positive correlation with the first shareholder’s shareholding proportion The increase of the first shareholder’s shareholding proportionand make its interest and minority shareholders’iinterest tend to coincide,it is beneficial to use the raised fund for the listed companies.(3)The equity restriction ration can inhibit the largest shareholder occupying company resource and improve the use efficiency of raised fund.(4)Although based on the agency cost theory state-owned listed companies and private listed companies have big differences in the cost of agency,but their operating efficiency of raised fund are comparable.Finally,base on the empirical results,we put forwad corresponding advices for policy establishment in order to regulate the use of raised fund in public offers effectively.