Analysis On Usage Efficiency Of Private Placement Funds Of Listed Companies

With the implementation of the non-tradable share reform in 2006 and the promulgation of "Measures for the Administration of the Issuance of Securities in Listed Companies",private placement has been favored by listed companies in China for virtue of its own advantages and has become the preferred refinancing method for listed companies.According to the study,the number of private placement companies in our country and the amount of financing have experienced rapid development.The scale of financing increased from 85.311 billion yuan in 2006 to 1.39 trillion yuan in 2016,an increase of more than ten times.With the enthusiasm of listed companies in our country for the way of private placement,how to use them reasonably and efficiently has become a hot topic.However,the research shows that although private placement has brought enough funds to the company,many companies are not using the money to achieve the expected results and the capital market fails to achieve the ultimate goal of optimizing the allocation of resources through private placement.The reason is the improperly use of funds raised.This article analyzes how to use the founds of private placement to raise funds utilization efficiency in the form of case analysis and provides reference for the listed companies in our country.This paper first introduced the related theory and concept of efficiency of use of private placement funds,including the definition of private placement,the definition of the efficiency of the use of funds;the influencing factors of the private placement funds utilization efficiency,including the investment of funds,the idleness of funds and the capital supervision;the evaluation index of the efficiency of the use of funds,from the aspects of adequacy,effectiveness,liquidity and DEA comprehensive efficiency evaluation;Finally,this paper explained the theoretical basis for analyzing the efficiency of the use of private placement funds,the supervision effect theory,the management defense hypothesis and the information asymmetry hypothesis.Then,in the part of case analysis,this paper selects Shenzhen Green Eco-manufacture High-Tech Co.,Ltd.as the analysis object,and analyzes the case based on the basic situation of the company and the background of the case.First of all,it expounds the specific fund utilization plan and the actual use of funds of Green Eco-manufacture.Then,it evaluate the efficiency of the use of founds of Green Eco-manufacture from the three aspects of adequacy,effectiveness and liquidity,chooses Increase Rate of Business Revenue,Rate of Return on Common Stockholders' Equity,Earnings Per Share,and Liquidity Ratio,Quick Ratio,Current Asset Turnover,Total Asset Turnover and other indicators,and come to the conclusion that Green Eco-manufacture has high efficiency of the use of founds;Combined with the DEA model at the industry level to analyze the comprehensive efficiency of Green Eco-manufacture.Following that,it summed up the specific performance of high efficiency of the use of founds,including reducing financial risk,extending the industrial chain,and enhance research strength,and analyzed the cause of the high efficiency of the use of funds combine with the specific use of Green Eco-manufacture's raised funds and specific investment projects.In the end of this article is the conclusion and the enlightenment part of the case analysis.Through the analysis of the Green Eco-manufacture's private placement funds utilization efficiency,this paper draws the following conclusions:(1)Strengthening Supervision to ensure the implement of the plan ensure the adequacy of the use of funds;(2)Taking into account the development strategy to determine the investment projects is conducive to improving the effectiveness of the use of funds;(3)The reasonable arrangement of funds in combination with the financial situation of the enterprise is help to enhance the liquidity of capital utilization.On this basis,we get the following enlightenment:(1)Formulating the plan according to the company's conditions is the prerequisite to improve the efficiency of capital utilization;(2)Firmly implementing the plan of capital utilization is the key to improving the efficiency of capital utilization;(3)Positive regulatory environment for the use of funds is the protection to improve the efficiency of capital utilization.