Research On Efficiency Of Using Enlight Media's Over-raised Funds

China's Growth Enterprise Market(GEM)was officially launched on October 30,2009.With the opening of the GEM market,which many small and medium-sized enterprises have been looking forward to for a long time,it has provided many small and medium-sized enterprises in China with very good conditions for listing.To put it simply,the GEM market is also a broader channel for financing.Innovative enterprises or high-growth enterprises can successfully raise funds while successfully listing on the GEM market through the GEM market as a service platform.It further promotes investors to explore the investment channels and share the benefits of economic and corporate growth.After the establishment of the GEM,the average over-raising rate of 28 enterprises listed in the first batch was nearly 120%.Since then,the over-raising phenomenon of the GEM has entered the social horizon.Relevant experts,scholars and regulatory agencies have discussed and pondered on this issue.But in the following years,the phenomenon of the GEM enterprise's over-raising has become the norm.By the end of 2017,710 enterprises had successfully landed on the GEM,and the proceeds from the GEM market plan were 19.7508 billion yuan.While the total amount of funds raised was 323.834 billion yuan,with the over-subscription rate as high as 63.96 percent.This paper systematically analyzed,sorted out,induced and summarized the relevant literature on the issue of over-raising funds at home and abroad.Based on the information asymmetry theory,principal-agent theory and the comprehensive risk management theory,this paper analyzed the phenomenon of over-raising funds on the GEM.At the same time,taking the case of over-raising funds listed on the GEM of Enlight Media as the research object,the author puts forward that the imperfect regulatory system,the interests of the sponsoring agencies,the issuer's pursuit of maximum income and the lack of rational investment by investors are the reasons for the over-raising of funds.The paper analyzes the efficiency of the use of Enlight Media over-raising funds from three aspects: enterprise growth ability,profitability and shareholder return on investment.It is considered that the imperfection of the legal system,unclear use of raising funds for enterprises and the arbitrarily changing investment plans have resulted in inefficient use of over-raising funds for Enlight Media.And then we put forward several suggestions such as improving relevant laws and regulations,increasing supervision over major shareholders and sponsoring institutions,and correctly guiding investors 'rational investment to ease the problem of over-funding of GEM enterprises.