The Listed Company Over-raised,Mergers And Acquisitions And Company's Operating Performance

China's Shanghai and Shenzhen stock market was formally established in 1991.Some companies will raise much more money than they planned in the company's initial public offering(IPO).This phenomenon is called over-raised,and the part more than planned is called over-raised funds.With the establishment of the Growth Enterprise Market(GEM)in 2009,the phenomenon of over-raised financing is more serious.However,how to use the huge over-raised funds to bring company the best operating performance is the market concern problem.China's regulators introduced a series of management regulations to clarify how to use over-raised funds.However,mergers and acquisitions(M&A)can quickly expand the size of the company and bring the company's rapid growth.At the same time,M&A can improve the market concentration,achieve economies of scale,and digest the huge over-raised funds under the management regulations.M&A can not only bring a effective way to spend the over-raised funds,but also can reduce agency costs.So from the view of market competition theory and synergies by expanding the scale of business,M&A is a better choice for the GEM to solve the over raised funds.At the same time,the M&A decision made by the company to seek the way out of the over-raised funds by the stipulated rules may be different from the synergistic effect brought by the conventional M&A decision.The two points determine the existing M&A theory can't fully explain the influence that GEM companies use over-raised funds to M&A.Therefore,whether it is for the development of the capital market,or the growth of the real economy,it is vital to study the relationship between the over-raised funds to M&A and the company's operating performance.Under the background of over-raised,studied the relationship relationship between the over-raised funds used for M&A and the company's operating performance.And analyzed the influence of the over funding ratio on company operating performance.Finally,gave some advice to the regulatory agencies to develop funds,which is helpful to improve the effectiveness of the company to raise funds to raise funds,to improve the using efficiency of the over-raised funds,to optimize the allocation of capital market resources.This paper adopted two kinds of research methods:theoretical analysis and empirical research.First of all,the paper analyzes the characteristics of high salary,high valuation and high growth of the GEM and studied the phenomenon of high cash flow and the irrationality of M&A investment.Then,did the empirical study.So selected the company listed on the GEM from 2009 to 2012 as a sample to study the relationship between the over-raised funds used for M&A and the company's operating performance.And then selected those who use the over-raised funds for M&A as a sample,to analyze the influence of the over funding ratio on company operating performance.Finally,a robustness test was conducted.Results came out that:first,in the option whether to carry out M&A with over-raised funds,the company who chose�no�operating performance is much better.Second,for the sample that use over-raised funds for M&A,the higher the over-raise ratio is,the worse the company's operating performance is.