A Study On The Efficiency Of Equity Financing For The Listed Companies In Strategic Emerging Industry

The development of strategic emerging industry has become a major strategy toseize the commanding heights of economic and technological development for themajor countries around the world."The12th Five-Year" period will be a criticalperiod for the development of strategic emerging industries in China, the nurtur e anddevelopment of strategic emerging industries need the financial support, and theequity financing mode of risk preference could more satisfy the inherent requirementof the strategic emerging industries, which is of capital-intensive andtechnology-intensive. Whether the listed companies in strategic emerging industrycould make full use of equity financing to match the efficiency of capital allocation,which is very crucial for the nurture and development of strategic emerging industries.This article analyzed the equity financing efficiency of listed companies in thestrategic emerging industries, from the perspective of the empirical research. Throughsorting out the theory of equity financing, this article selected the input and outputindicators, which could indicate the equity financing efficiency accurately of thelisted companies in strategic emerging industries. Since the traditional evaluationmethod of efficiency did not consider the impact of slack-based input andenvironmental factors, this article combined the traditional four-stage DEA methodand SBM model to measure the equity financing efficiency of309listed companies instrategic emerging industries from2007to2011.The results showed that the environmental factors like economic level, propertycharacteristics and the reform of split-share structure had an important influence onthe efficiency estimating; the was significantly higher after the slack-based input andenvironmental factors were controlled. Among the seven strategic emerging industries,the IT industry had the highest equity financing efficiency, and the bio-industry wasaffected by environmental factors most；there were significant regional differences onthe equity financing efficiency, the eastern region was the most efficient beforeadjustment, after adjusted, the efficiency of western and central regions were beyondthe eastern region entirely. Based on the empirical results, this article also put forwardsuggestions on enhancing the equity financing efficiency in strategic emergingindustries, including strengthening the financial ecological construction, grasping theneeds of industry financing, narrowing the differences of regional financing and optimizing the company ownership structure.