| The capital market in China did not develop until the economic reform emerged in late70’s. It has quickly prospered in a short time since the establishment of Shanghai Stock Exchange. In addition to promoting the financing channel and the long-term development of business, the capital market motivates the reform of state-owned enterprises and the construction of company system as well as the optimization of resource allocation. The market value in China has ascended to top2in the whole world, which has facilitated the business financing up to5400billion yuan. Huge transformation has been occurred in the capital market, especially the share distribution reform launched in2005. It is a good news that our country’s capital market is dramatically developing and the financing scale is unceasingly expanding.There are lots of problems in IPO’s utilization. For instance, some quoted companies use the raised fund to invest the uncommitted programs or repay the loan, or even leave it unused and so forth. The reasons to these problems can be divided into two parts:external causes and internal causes.The external causes are:(1) the change of economic environment leads to the IPO funds modification;(2) deficiencies exist in regime of law and supervision;(3) small investors lack the sense of exercising the rights and protecting their own interests.The internal causes are:(1) the corporate management is not good enough to supervise the IPO funds effectively;(2) the analyze research before the investment projects is insufficient to estimate the market and the industry trend;(3) some companies alter the funds in pursuit of high yield.From the previous studies on the usage of offering funds, there is rare research about IPO alteration and benefit in foreign country. Because foreign capital market is relatively perfect, the laws and regulations are relatively sound, at the same time, the relevant departments of supervision is also strong, rarely company alters the offering funds or the usage of the offering funds is not up to the expected benefits. In our country, up to date, there is no clear definition about the efficiency of IPO funds utilization. Some may measure the efficiency according to the financial index, which is not strongly convincing. There are not sufficient researches about the utilization of IPO funds. Domestic researches mainly focus on the alteration of IPO investment, or the investigation of the causes and effects.This essay selected the company that had finished all funds raised from the year2006to2009, deadline in2011, after reformation of split share structure in Shenzhen Stock market through the IPO manner, as the sample of the study, to observe the usage of its funds raised. Whether IPO offering funds investment changed and whether the use of funds reached expected benefits were investigated for empirical research. LOGIT model was applied to investigate the company’s internal governance, empirical testing related to the cyclical nature of the national economy and future development. With the statistical software Stata.ll regression test, we came to the following conclusions:(1) The cyclical nature of the national economy is affecting the use of the company’s IPO offering founds significantly, that is, in a boom phase of the national economy, the company IPO offering funds less prone to invest in change, at the same time, the use of the company’s IPO offering founds more easy to achieve the expected benefits.(2) The level of internal corporate governance significantly affect the use of the company’s IPO offering funds, that is, the higher the level of internal governance and the smaller the probability of the company IPO offering funds to invest in change, the more easy the use of the company’s IPO offering founds to reach the expected benefits.(3) The company’s development capabilities have negative correlation to the company’s IPO offering funds to invest in change, but the results are not significant. On the other hand, the development of the company has a significant impact on the efficiency of the use of the company’s IPO offering founds, that is the company’s growth faster, the use of the company’s IPO offering funds more easy to achieve the expected benefits.Based on previous research findings, the use of the company’s IPO offering funds will be influenced by many factors. Therefore, improvement of internal governance and company competitiveness, strengthen external supervision, to create a good economic environment and many other policy measures can be able to solve the problems in the use of the company’s IPO offering funds process, to maximize efficiency in the use of the founds.This essay was standing on the shoulder of previous studies and trying to expand the study. The main characteristics and innovations are:Firstly, previous scholars measured the efficiency of the use of the company IPO offering funds through the company’s performance in a few years, mainly the financial indicators. Few people measured from whether the project itself achieved the anticipated benefits after the completion of the project to value the use of founds. However, we did that in this essay.Secondly, in the selection of influencing factors on the use of IPO offering funds, general studies used ownership concentration and the proportion of independent directors as indicators to measure the level of corporation governance. However, referencing to the evaluation model of internal governance of listed companies in China created by Shi Donghui et al, this self-made internal governance index (ICGII) was made to evaluate the use of company’s offering founds more accurately.Thirdly, general studies were looking from the microscopic point of influencing factors of the use of IPO offering funds. We looked at the use of the IPO offering funds in the course of the financial crisis, indicating that the influence of external economic environment was significant. Therefore, in this essay, the cyclical nature of the national economy was included in the research and analysis as an independent variable.Finally, to overcome the shortcomings of this essay, we hope to expand the sample size, to introduce more control and to measure whether offering funds achieve the expected benefits more accurately in future studies, so as to come to more accurate conclusions. |
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