The Research Of Changing Investment Direction Of IPO Raised Fund

In recent years, a large number of companies got financing by IPO equity financing in the securities market. Following the successful listing, there is a part of listed companies that didn’t invest the raised fund into the project which was promised in prospectus as planned. They changed the direction of initial fund investment and resulted in a series of problems.Under this background, the companies that changed the investment direction of the raised fund by initial public offer in A shares’ main board market in year2010-2012are chosen as samples based on the review and summarize of the literature at home and abroad. By using the statistical software EXCEL and MATLAB, the data can be dealt with, descriptive analyzed and linear fitted. Based on the above methods, the reason and the influence of changing the investment direction of the raised fund by IPO can be discussed and studied.The paper divides into six chapters. The first chapter is introduction which mainly describes the research background and contents of this paper. The second chapter is literature review that first introduces the related literature at home and abroad, and then introduces the related literature about the reason and the influence of changing the investment direction of the raised fund by IPO. Chapter three is a descriptive statistics. First, the situation and the historical data of the whole market and the changing will be collected. And then the companies that changed the investment direction of the raised fund by initial public offer in A shares’ main board market in year2010-2012are chosen as samples. The samples will be descriptive statistics analyzed in three aspects which is the companies’ industry distribution, the frequency of changing, the type of changing and where the money goes. The fourth chapter discussed the reasons of changing the investment direction of the raised IPO fund in detail. The changing reasons divide into external reason and internal reason. And following the content in the previous chapter, changing reasons will be analyzed by using the reality content of the samples. According to the statistical data, the chapter five researches the changing influence of share price volatility and corporate business performance by establishing the linear regression model. Results show that the changing has no effect on share price volatility, and affect the corporate business performance, make it worse in short term. The last chapter gives the research conclusion of this paper and also gives some suggestions that improve the situation of changing investment direction of raised IPO fund.