The Analysis Of The Problem About The Usage Of The GEM Listed Companies’IPO Funds

The establishment of the GEM in China’s securities markets in2009providesfinancing channels and the growth space for small and medium-sized companies,emerging enterprises and high-tech enterprises with small size and high growth whichcan’t meet requirements for the listing. And it aims to help such enterprises solve thefinancing problems and provide convenience for its further development. However, withthe listing of the GEM, it is common that the IPO investment project changes, thecapital investment rate is low, and funds are misused, which results in the low rate of theefficient use of the IPO investment of GEM listed companies.First, this article analyzes the fund-raising status and usage of funds of IPO of theGEM listed companies, and presents some problems of the usage of funds of IPO. Thestudy indicates that there exist the following problems on the use of the IPO funds ofthe GEM listed companies. First of all, there exists a serious phenomenon that the IPOinvestment project changes randomly in the process of the use of the funds. And therealso exists the unsound disclosure of the alteration information; Second, some of GEMlisted companies raise IPO funds quite slowly without following the schedule to use thefunds; Last, some of GEM listed companies use the IPO funds inefficiently, and thereeven exists the decline of the companies’operating performance.Then the article analyzes the factors resulting from through building regressionmodels, mainly studies the use of the IPO funds from three aspects, including thecorporate governance, the company’s growth factors and the institution. The article thenstudies the relationship between the effects of the use of the funds of the IPO and theusage of them through the empirical analysis. And it concludes that ownershipconcentration, incentives and restraints to the key workers, the growth of the companiesand the listed companies’ regions can exert a tremendous influence on the IPOinvestment project alteration. And ownership concentration, incentives and restraints tothe key workers, and the listed companies’regions have a great impact on the IPO fundsinvestment rate. The IPO investment project alteration and the investment stateinfluence greatly the efficient use of the funds.Finally, the article put forwards many corresponding suggestions to improve theefficiency of the use of the IPO funds from various aspects influencing the use of theIPO funds according to the above research results, including improving corporate governance and the company’s core competitiveness, optimizing investment andfinancing of listed companies as well as exerting strict control over the informationdisclosure of listed companies.