The Research On The Financing Efficiency Of Listed Companies In China's Growth Enterprise Market

Growth Enterprise Market(GEM),also known as the second board market,is the supplement of the main board market.In 30th of September,2016,the market value of the GEM has reached to 52361 billion yuan.However,in the meantime,the problems such as "three high indexes"(high stock price,high price-earnings ratio,high raise rate)also appear gradually.Therefore,it is of great practical and theoretical significance to study the financing efficiency of listed companies in the GEM.Firstly,this paper summarizes the research of others.Due to the short establishing time of and the limited number of listed enterprises,financing efficiency of the listed companies of the GEM was rarely studied.Then,this paper sorts out the relevant theories and defines related concepts,which lays a solid theoretical foundation for the rest of this paper.Then,this paper summarizes the characteristics of the market with the help of descriptive statistical analysis.This paper compares the financial data of the total asset scale,solvency,profitability and operational capacity of the firstly listed 28companies,and analyzes the trend of their financial characteristics.This study can deepen our understanding of the financing efficiency of the listed companies in the GEM in China.Most listed companies' asset sizes and revenues are expanding rapidly.Although their leverages also tend to expand,their debt ratios are still at a low level.It is obvious that the listed companies in China's GEM rely too much on the equity financing.In addition,the indicators of profitability and operational capacity deteriorated in recent years.This problem is related to the"three high indexes"(high stock price,high price-earnings ratio and high raise rate).Then,this paper uses the DEA to evaluate the financing efficiency of the listed companies in China's GEM in 2015.The main conclusions are following:Firstly,the size of the GEM market expand rapidly.The GEM can effectively stimulate the scale of enterprise,and the companies tend to improve leverage.In addition,the role of the GEM for enterprises to improve profitability and operational capacity is not obvious.Secondly,the overall financing efficiency of the listed companies in China's GEM is in a low level.Thirdly,the majority of companies have achieved the relatively efficiency.In addition,the average efficiency is closed to the goal,indicating that achieving effective financing is still very promising.Forthly,the GEM listed companies are mostly in the stage of increasing returns to scale.Fifthly,the problem of extra raise of China's GEM appears gradually.Too much funds are not used in the right way,which mainly explains the low financing efficiency.Sixthly,how to use funds effectively and how to improve the profitability are the most urgent problems of listed companies in China's GEM.Seventhly,the information technology industry is relatively more efficient than the manufacturing sector.The enterprises which have reached eiffient financing have higher the proportion of liabilities and reasonable asset structure,profitability,reasonable cost control and the asset turnover ability.At last,I proposed the following suggestions:Firstly,broaden the financing channels and improve the finance structure.Secondly,strengthen innovation and improve the core competitiveness.Thirdly,strengthen the control of funds and increase the regulatory requirements of information disclosure.Forthly,strengthen market supervision and guide the pricing of new shares to be reasonable.