Listed Companies To Raise Funds To Invest In Management Analysis

In the mature stock markets of foreign countries, it is very rare for listed companies to change their investment direction for raised fund, which requires firstly a very long period of time, secondly a quite complicated procedure, and finally a necessary process for re-approval and re-modification of registration documents in addition to information disclosure. However, in the stock market of our country, the randomness in changing raised fund by listed companies does not only expose the defections of supervision in China’s stock market, but also is a waste of resource allocation in the market. Taking this as the background, this article expounds the features and similarities of raised fund changes made by listed companies. Through studying the utilization efficiency of raised fund, it is demonstrated that changing investment direction of raised fund is a low-efficient action. Corresponding countermeasures have also been specifically put forward. The study of this problem holds not only realistic meaning, but also certain theoretical significance. This article is divided into five parts, with the main content of each part as follows:Chapter One is the introduction, where the issue of frequent changes in investment direction of raised fund by listed companies in our country are brought up.Chapter Two is the fundamental theoretical base, which introduces the theory of authorized agency, asymmetric and incomplete information, as well as other company managing theories.Chapter Three is the analysis of current developing situation and utilization efficiency of raised fund. Through comprehensive and in-depth analysis of sample data, prominent problems in raised fund changes are concluded.Chapter Four is the empirical analysis of factors affecting raised fund direction changes for listed companies, analyzing various factors affecting listed companies in changing the investment direction of raised fund.Chapter Five is suggestions for policy improvement proposed against relevant issues that have emerged.