The Firms’ Equity Financing Efficiency And Its Influencing Factors In Zhejiang That Listed On The New OTC Market

Since the policy of reforming and opening,the high speed growth of China’s economy has also vigorously promoted the development of small and medium sized enterprises.At present in our country,the indirect financing through banks is the majority of small and medium-sized enterprises to finance,however,to carry out direct financing of enterprises is relatively small,the reason lies in that the small and medium sized enterprises are not as large as stateowned enterprises and some large private enterprises,so there is not a good platform such as Main-board Market or GEM that investors can direct.On the other hand,regional Stock Exchange Center is short of fluid and limit the investors.Since the establishment of Stock Exchange Center,the trading volumes has been limited,it is not active.To solve the problem of financing of small and medium enterprises has been the world’s commitment.The New OTC Market(National Equities Exchange and Quotations)communicates with the capital market and the financing of small and medium-sized enterprises,it is also the cornerstone of Multi-level Capital Market of China,especially since the Third Plenary Session of the 18 th Central Committee of the Communist Party of China,it leads to the direction of financial reform.And it is also an important channel to regulate the financial market order and disperse financial risk.Since 2014,small and medium-sized enterprises listed on the New OTC Market’s intention are becoming more and more intense,only a year there are 1216 listed companies.The number of enterprises has reached 9122 by the end of September 30,2016.The trading volumes has been increased form 814 million yuan to 113 billion 36 million yuan even to 91 billion 62 million yuan form 2013 to 2014 to 2015.We can see that the establishment of The New OTC Market is a win-win cooperation for investors and small and medium-sized enterprises that investors have idle funds voted out and small and medium-sized enterprises also melt into the survival and development of the required funds.On the basis of reviewing and combing the domestic and foreign develo-pment of enterprise financing structure theory,this paper explores the equity financing efficiency and its influencing factors of firms in Zhejiang listed on T he New OTC Market.The New OTC Market has been set up not long ago,the relevant data can be obtained through National Equities Exchange and Quotations(www.neeq.com.cn),which provides us a condition that we explore the equity financing efficiency.In this paper,the DEA model of equity financing efficiency is established to explore the firms’ equity financing efficiency that listed on The New OTC Market of Zhejiang by the end of December.31.2015 a nd with the DEA model we obtain the low efficiency of equity financing of firms in Zhejiang listed on The New OTC Marke.Then we use SPSS multiple stepwise regression method and put forward some suggestions for the firms in Zhejiang listed on The New OTC Marke to improve firms’ equity financing efficiency.