The Analysis On Improper Usage Of Over-Raised Funds Of Listed Companies On GEM

In October 2009,the GEM market known as "China's Nasdaq" was finally launched,which means that substantial progress has been made in China's diversified financing strategy.By the end of 2017,721 enterprises listed on GEM had raised 197.508 billion yuan.However,since the GEM listing,the phenomenon of over-raised funds and the improper use of over-raised funds have frequently occurred.National Technology Co.,Ltd.is one of them.It was listed on the GEM in October 2010.It planned to raise 336 million yuan.In fact,it raised 2.3 billion yuan,and over-raised nearly 2 billion yuan.However,after the listing,the problem of improper use of over-raised funds continues to occur,which leads to a series of consequences,such as the decline of business performance,the decline of shareholder returns,and the rise of enterprise management difficulty.Therefore,how to use excess fund efficiently and reasonably has been a hot topic since the establishment of GEM.Taking National Technology Co.,Ltd.as the case subject,this paper analyses the specific manifestations,consequences and causes of the improper use of overfunded funds,and puts forward corresponding suggestions,which will help to improve the efficiency of the use of overfunded funds in GEM listed enterprises,improve the system design of relevant departments,and help academia better enrich the relevant theoretical knowledge of the improper use of overfunded funds.This paper will use theoretical analysis and case analysis to study the improper use of overfunded funds of GEM listed companies.On the basis of relevant literature at home and abroad,combined with the use of overfunded funds of National Technology Co.,Ltd.,this paper summarizes the specific manifestations,consequences and causes of the improper use of overfunded funds,and finally draws conclusions and suggestions.This paper is divided into five parts: the first part is the introduction,mainly introducing the research background and significance,domestic and foreign related literature,research ideas and so on;the second part is the theoretical part of this article,mainly elaborating the related theories of overfunded funds;the third part is the relevant introduction of case companies,mainly introducing the situation of overfunded funds and the use of overfunded funds of case companies;the fourth part is about the overfunded funds of case companies.It is divided into case analysis,according to the specific performance of the case company's inappropriate use of overfunded funds,analysis of the consequences and causes of the inappropriate use of overfunded funds;the fifth part is the conclusion and suggestions of this paper,while illustrating the shortcomings and prospects of this study.Through the analysis of the improper use of overfunded funds in National Technology Co.,Ltd.,this paper draws the following conclusions:(1)the main reason for the improper use of overfunded funds in enterprises is that the existing laws are not standardized;(2)the improper use of overfunded funds will lead to a decline in operating performance;(3)the improper use of overfunded funds will lead to a decline in the rate of return on shareholders' investment;(4)the improper use of overfunded funds.Improve the difficulty of enterprise management.On this basis,in order to prevent the phenomenon of over-raised funds and the improper use of over-raised funds,this paper puts forward four suggestions:(1)improve the relevant provisions of IPO listing;(2)revise the legal norms for the use of over-raised funds;(3)establish the open management system and integrity mechanism of shareholders;(4)improve the relevant laws and regulations for the protection of small and medium-sized shareholders.