Research On The Efficiency Of Fund Raising In Mai Qu-er

Financing difficulties, expensively finance, high capital cost has been worsening the environment of corporate financing and aggravating the financial constraints,which has seriously restricted the corporate’s production and development. With the continuous development and improvement of China’s capital market, equity financing(IPO and private placement)has become an important source of external financing of listed companies in China. However, duing to China’s capital market is still in an early stage of development, regulatory and restrictions is still constructed in many aspects, There are so many documents which related to equity financing focused on exploring IPO through backdoor listing or earnings management, misappropriating public, big bath in order to avoid delisting, A series of problems above which detrimentally damaged the interests of outside investors and the efficiency of capital market. Profit-driven behavior of companies to be listed on the first revealed that it’s so difficult that listed companies to raise funds which are scarce. However, what the using efficiency of scarce funds raised from the capital markets? There are few literature involved. Especially nowadays, the change of raising funds(hereinafter referred to as "fund-raising Changes") which becoming an increasingly number of issues intensified. The motivations and reasons for the changes to raise funds(management of self-interested or altruistic motivation), The changing way and definition(goodwill change or malicious changes), the economic consequences(such as corporate finance, investment, operating performance and market value, etc.) and other academic controversy issues have become one of the hot topics on the capital market. So, The fund-raising Changes, which at last improving the operating efficiency or manifesting another management of self-interest? Although some scholars made some qualitative and quantitative research on the efficiency of fund-raising, but there also did not come to a consensus, particularly, concerning the efficiently use of fund-raising were hot debated. There are less scholars to make a systematic and comprehensive evaluation on the operating conditions and the using efficiency of funds-raising about many family businesses, who faced the present discrimination. Let alone the revealed causes of low(high) using efficiency of funds- raising.Therefore, choosing a typical family business, The group and shares limited liability of Xinjiang Mai qu er(hereinafter referred to as " Mai qu er ") as a case, this article attempts to combine with the performance of its fund-raising before and after, through the theoretical discussion, trend analysis and comparison charts and other methods and found a review of the annual report and related announcements to explore the using efficiency of raising funds and the underlying causes of its. The study found that Mai-qu er got through the IPO and private placement through earnings management or other means,which has raised a large amount of scarce funds on the capital market, but Mai-qu er did not invest the funds for the high return, which has planned in Pre-cast project, while putting it to buy financial products, guarantee and increase the registered capital of its subsidiaries and cash dividends. Compared to the investment income, return on assets, profitability and ability to grows of companies IPO and fund-raising before and after. We can found that investment income is far less than expected, return on assets has been declining, the profitability continued to decline, the ability to grow is also limited, that is to say, funds-raising have been inefficiently used. Cause dating back that the imperfect structure of corporate governance under the family business "Pyramid" structure and the unsound development of China’s capital market, especially, the lack of external supervision mechanisms. What above Not only revealed(family) business behind the causes inefficient use of funds raised, but also provide experience for reference and policy reference for the relevant departments as well as outside investors(Mai qu er) provides investment reference and value judgments.