Ultra-raised Phenomena Reasons

To vigorously develop small and medium-sized high-tech enterprises is required for Chinese implementation of independent innovation strategy. At present, the majority of small and medium-sized high-tech enterprises are in the formative years, urgent need for funds. GEM was established originally to give SMEs more financing channels, which meet the development of strategic emerging industrial policy. However, the current situation is not very satisfactory. In terms of fundraising, raised proportion is far higher than other markets, ultra-raised phenomenon means inefficient allocation of resources, even lead to the serious consequences of a waste of money. So we must look for ultra-raised reasons of the formation and propose effective measures to resolve.Theoretical studies lack of empirical research articles because GEM was established a short time. We plan to study ultra-raised by Inductive analysis of data of the GEM Listing SMEs. Make relevant recommendations to improve GEM financing environment and institutional, providing reference for market-oriented reforms of the capital market.Firstly, sort out the relevant literature. There are differences in the scope of study between literature abroad and domestic literature. Foreign literature will provide theoretical references for China’s ultra-raised phenomenon in certain aspects, such as financing and market regulator)’system. Many domestic scholars make a certain point that ultra-raised phenomenon emerged because of China’s IPO system. There are many examples of a waste of the raised funds. Secondly this article will analyze the relationship of the parties in markets by the supply and demand theory, information asymmetry theory, signal transduction theory and game theory. Analysis the causes of ultra-raised from the perspective of the market level of the parties involved, after satisficing the amount of money of ultra-raise and the ways to be used. The sample is made of listed companies, which are Listed from September30,2009to December31,2011.There are two ways to make a research-Multiple regression and logistic regression.The analysis showed that, the amount of new shares issued, the industry expected and monetary policy are the main impact of the raised scale, which related with the underwriters and listed companies in their size and profitability. The relationship between raised the scale and various internal indicators of the corporate governance is not clear, specifically in solvency.The framework of this paper is organized as follow:Chapter1:Introduction. This section described the main content of the background and significance. Introduce writing ideas and frameworks and then summary contribution.. Proposed significance in theory and practice, base on explaining the concept of ultra-raised and elaborating the emergence and development of China’s GEMChapter2:literature review. Due to no requirement for submitting plans on raise funds abroad, foreign literature and domestic literature are slightly different in the content. Most of the foreign literature listed company IPO pricing, market regulatory issues and financing channels for SMEs of high-tech. In addition to the EPO price pricing, domestic literature also introduced development of IPO system and theoretical research on ultra-raise.Chapter3:basic theory and normative research on ultra-raise. The research mainly includes information of ultra-raised,such as use of funds raised, reason of ultra-raised from Parties involved market.Chapter4:hypothesis. Set the sample range and variable. When setting the variable, discuss from macro-miso-micro hierarchical to avoid missing.Chapter5:empirical study. Reasonable method is used to finish the regression analysis and testing. This part includes hypothesis, sample selection, model design, descriptive statistics, and regression analysis.Chapter6:summarize the results of earlier research. Proposed policy recommendations and opinions after summering economic phenomenon of raise ultra.The contribution of this paper can be divided into three areas:(1) Compared with previous literature, the factors of ultra-raised reason to be considered more comprehensive. (2) the IPO system to be quantified as two parts:supply and demand from the market, showing concrete manifestation of the listing regime impact on raised the scale.(3) The fundamental reason of Ultra raise lies in the IPO system, reflecting the the IPO reform of necessity and practical significance.In the writing process, there are still some deficiencies. Due to constraints, this paper did not use the larger sample size for statistical analysis. Variable indicators will inevitably lead to omissions in the calculation process that may affect the accuracy of the results. In view of the above-mentioned shortage, we will expand the scope of the study when conditions mature.