The Study On Influence Of China's Listed Companies' Change Of IPO Investment Project And Companies' Performance

The capital market provides the essential source of capital for the development of companies. However, some companies change the the initial investment projects of raising capitals in private. Regardless of whether the change of investment projects are illegal, investors and managers are absolutely concerned about whether the change will affect the performance of listing companies or how it will affect and to what extent it will affect. This paper makes an empirical research on this issue, hoping to provide some reference basis for managers to make some regulations regulating the using of the listing companies funds.After reviewing the existing theoretical literature at home and abroad about alteration of financing capitals theories,this paper uses methods of theoretical analysis and empirical testing to study the influence of alteration of financing capitals on short-term and long-term performance of companies. This paper chooses 612 companies as study sample that their IPOs are at A stock market between 2000 and 2014.Financial data of companies and the information of alteration of financing capitals are collected.Given the difference of controlling stake in state-owned enterprises and non-state-owned enterprises, this paper checks the results respectively on the whole sample, the state-owned enterprises and non-state-owned enterprises with multiple linear regression.After empirical analysis, the following conclusions are drawn:(1) As a whole,alteration of IPOs financing capitals has obvious bad influence on the short-term and long-term performance of companies, but the influence on the long-term performance of companies is weaker than that on the short-term performance of companies.(2)Both in state-owned enterprises and non-state-owned enterprises, alteration of IPOs financing capitals has obvious bad influence on the short-term performance of companies, but in the state-owned enterprises alteration of IPOs financing capitals has no significant correlation to the long-term performance and in the non-state-owned enterprises it is on the other way round.(3)In the whole sample, the extent of alteration of IPOs financing capitals has significant negative correlation to the performance of companies,however,the influence on the long-term performance of companies is weaker than that on the short-term performance of companies.(4) Both in state-owned enterprises and non-state-owned enterprises, the extent of alteration of IPOs financing capitals hasobvious bad influence on the short-term performance of companies,but in the state-owned enterprises the extent of alteration of IPOs financing capitals has no significant correlation to the long-term performance and in the non-state-owned enterprises it is on the other way round.Based on the empirical results, we come up with suggestions regulating the investment and management of listed companies capitals. First, a sound project investment evaluation system should be built. Second, more supervision and guidance on the use of raising capital are needed to provide for companies. Third, based on information disclosure, more supervision on IPO raising capital should be forced on companies. Forth, the illegal acts in the use of raising capitals should be severely punished. Fifth, the management of internal use of funds should be strengthened. Sixth,more supervision on the use of raising capitals and support should be given to nonstate-owned enterprises.