The Analysis On Usage Of Ipo Funds Of Listed Companies On GEM

This article chooses Changsha Kaiyuan Instrument Stock Corporation,through the literature summarization method,case analysis and financial indicators comparison method,finds that the use of funds raised in the IPO have the following problems:1?For the IPO raised investment projects are not used as plan,changed frequently.2?The use of IPO proceeds is inefficient,repeatedly use the funds of the external investors permanently or temporarily supplement the company's cash flow.3?The original project was not carried out as schedule,frequent delays cannot produce good results on time.Through the case analysis of IPO raised funds of Changsha Kaiyuan Instrument Stock Corporation,this paper concludes that there are internal and external causes of the problem of improper use of funds.External causes include gaps in the legal system?penalty is small?the financing environment led the company to prefer equity financing;Internal causes include a flaw in its governance structure as a family business?and the low cost of external holdings has caused large shareholders to gain personal wealth through reductions?the feasibility of raising investment projects is not strong.On the basis of the above analysis,draw the conclusions of how to prevent China's GEM listed companies to use raised funds improper.For the outside,we should improve the legal system of subsidizing floating capital with IPO raised funds?will be delisting rules as a powerful punishment system?Open up diversified financing channels.For the company itself,improve the internal supervision of the family structure?standardize the behavior of major shareholders and increase the transparency of the proceeds of how to use raised funds by IPO.The uses of raised funds by IPO are inefficient ? super raised funds are over-investment?even the raised funds will be stored directly in the bank to increase interest.The following situations are does not meet the optimal allocation of capital market resources and not common.Through a typical case to study the problem of GEM listed companies' use of raised funds by IPO,find the reasons of those problems,finally seek the solutions of irrational investment behavior,has a strong practical significance.