The Research Of The Equity Financing Efficiency Of The Listed Companies In Shandong Province Based On DEA Method

Capital is the source and motive force of the development of the company, financing is one of the most effective way to obtain funds. In recent years, more and more companies choose equity financing to obtain funds. As a big economic province,Shandong province is one of the most developed provinces in China and one of the most powerful provinces in China. It is also a province with fast economic development. It has a good environment for the development of listing Corporation. On the basis of this, this paper makes an empirical research and Analysis on the equity financing efficiency of listing Corporation in Shandong province by using the data envelopment analysis(DEA)method.First, the efficiency of equity financing related concepts and related theories were defined and review: the definition of financing efficiency under different corporate governance model, the enterprise with the lowest cost and the minimum risk obtained the required funds and the rational use of funds for enterprises to create the maximum value of the capacity and effectiveness. On the basis of the equity financing efficiency refers to is under different corporate governance institutions, enterprises in the capital market through stock issuance to the lowest cost and the minimum risk to raise the necessary funds, and the funds raised to create maximum value for the enterprise; reviews the main content and the theory of equity financing related to the traditional capital structure theory, modern capital structure theory and new capital structure theory.Secondly, research and analysis of the Shandong Province status and influencing factors of equity financing of listed companies: the study found that in recent years,Shandong Province listed company has been increasing number and amount of equity financing also showed overall upward trend, but the listed company of regional distribution, and industry distribution is very uneven, with obvious gap between industries and regions.then, having a empirical research about equity financing efficiency of ShandongProvince listed company : select a sample of 105 units, with total net equity financing,operating costs, assets and liabilities rate as the input index, growth rate of net assets, rate of return on net assets and earnings per share, tangible net debt rate as output indicators,using DEA method of Shandong Province listed company equity financing efficiency from the empirical test from three aspects: Overall, industry and the trend. The research results show that: Listed Companies in Shandong Province only 11.43% of the company has reached the technical efficiency and efficiency of equity financing showing an overall low; industry distribution, belongs to the traditional industry of manufacturing industry accounted for 72%, other companies in the industry number and account for less than the proportion of 28%. In the 76 manufacturing industry, only 9 companies reached the DEA technical efficiency, accounting for 11.84%; The equity financing efficiency between2012-2014 having a growth trend, but the growth rate is very slow, there is a lot of room for improvement.Finally, according to the current research situation and the empirical results from the three aspects of the government, the society, the company proposed countermeasures to enhance the Shandong Province listed companies equity financing efficiency, including:the rational role of government, sound legal protection system, actively adjust the industrial structure, to broaden the financing channels, to improve the quality of investors,perfect the corporate governance structure, optimize the capital structure of the company and enhance the company’s innovation.