The Study Of Equity Financing Efficiency In Listed Bio-pharmaceutical Enterprises With The Constraint Of Bad Debt

With the development and improvement of China’s capital market gradually, the number of Bio-pharmaceutical enterprises which select equity financing and the scale of equity financing increased year after year. However, the efficiency of equity financing among China’s Bio-pharmaceutical enterprises are generally low. The alteration of financing usage, the failure of investment, litigation of investor, which make the government, the management and the major investment institutions start to study what affect the efficiency of equity financing among China’s Bio-pharmaceutical enterprises. The paper is to find out the micro and macro factors which affect the efficiency of equity financing among listed China’s Bio-pharmaceutical enterprises, in order to improve the abuse during or after the equity financing, improve the efficiency of financing usage, and improve the efficiency of Bio-pharmaceutical industry.This paper considers the characteristics of listed Bio-pharmaceutical enterprises which are high-risk as high-yield and intelligence intensive, joins the bad debt losses and technological progress these two indicators innovatively. Using the SBM directional distance function to measure the equity financing efficiency of listed Bio-pharmaceutical enterprises among 2009-2013 and decompose it, in order to find out the factors which affect the efficiency of equity financing among listed China’s Bio-pharmaceutical enterprises and the discrepancy among the multi-level capital market. Finally, using the Tobit model to find out the macro factors what affect the efficiency of the equity financing. The main conclusions of this paper are: Under the assumption of VRS, SME Board and GEM equity financing efficiency of listed Bio-pharmaceutical enterprises is slightly better than the Main Board Market, and the equity financing efficiency of listed Bio-pharmaceutical enterprises on Shenzhen Main board is better than Shanghai Main board. Under the CRS assumption, the equity financing efficiency of listed Bio-pharmaceutical enterprises on the GEM is far better than other sectors. In addition to the Cumulative of Net Financing and Equity Structure, the remaining factors on GEM are dominant, the low technological progress is the main factor which affect the inefficiency of equity financing among listed Bio-pharmaceutical enterprises. The increase of capital market development and the decline of the old-age dependency ratio have a significant role to the equity financing efficiency of listed Bio-pharmaceutical enterprises, and the GDP index and per capita health spending were not significant under the VRS and CRS assumption.