Analysis On The Reasons And Consequences Of Beijing Tianli Altering The Investment Direction Of Raised Funds

China securities regulatory commission(CSRC)requires that the investment projects of raised funds determined in the prospectus of a listed company shall not be changed at will.If there is a need for change,it shall be examined and verified by the board of directors,the general meeting of shareholders and the sponsor institution,and independent opinions shall be expressed by the independent directors and the board of supervisors.The majority of investors usually decide their investment behavior to a large extent according to the investment projects to be raised in the prospectus of the listed company(rights offering,additional issuance).Of course,investors will choose the investment projects with high returns,low risks and good prospects described in the prospectus.This helps most public companies raise the capital they want,and their next task is to use it efficiently.However,in recent years,listed companies to raise funds for the change of behavior is increasingly intensified.Whether they change in good faith or bad faith,investors were surprised by how quickly and how much money they raised.Relevant professionals point out that listed companies change the direction of raised funds too frequently and randomly,which indicates that they have defects in the formulation of corporate business strategy and fail to carefully and comprehensively recognize the opportunities and threats existing outside the company and the advantages and disadvantages inside the company.Some listed companies even just set up a project at first,and then look for other feasible projects after the fund is raised.Under the pressure of market regulation and the cost of reputation,why do so many companies make such decisions? Where is the money going after the decision? How will this affect the company's performance? What will be the market reaction? This series of questions are worth thinking and exploring.This paper takes the listed company Beijing Tianli Mobile Service Integration,Inc.(hereinafter referred to as "Beijing Tianli")as an example,combines theoretical analysis with case analysis,and conducts a specific analysis on the causes and consequences of the change of its raised capital investment.This thesis is divided into six chapters.The first chapter is the introduction.This chapter introduces the research background and significance of this paper,the literature review on the change of raised capital investment,the research ideas and methods of this paper,and the basic framework of this paper.The second chapter is the theoretical overview of the change of raised capital investment.Firstly,it introduces the definition and types of fund raising change and the main forms of the change,then it describes the reasons and consequences of the fund raising change of listed companies.Finally,it introduces the theoretical basis of this paper,including the theory of private income from control rights and the theory of information asymmetry.The third chapter is the case introduction of the change of capital raised by Beijing Tianli.Taking Beijing Tianli company as an example,this paper firstly introduces the background of Beijing Tianli company,then describes the procedure of Beijing Tianli's change,and finally elaborates the form of Beijing Tianli's raised capital investment change.The fourth chapter is the case analysis of the change of capital investment of Beijing Tianli.First of all,the real reasons for the change of capital raised by Beijing Tianli are analyzed in depth.Check the stock price fluctuations before and after the change of the investment orientation of Beijing Tianli's raised funds,select the abnormal cumulative return rate at important time nodes to analyze the market reaction.Secondly,diluted earnings per share,return on net assets,inventory turnover,growth rate of main business income and asset-liability ratio are selected as indicators to judge the company's performance.Finally,the wall proportion scoring method is applied to evaluate the overall performance of Beijing Tianli.The fifth chapter is the conclusion and inspiration.Firstly,the conclusion of this paper is drawn,and then corresponding countermeasures and Suggestions are put forward according to the conclusion of the investment change behavior of Beijing Tianli,such as perfecting the independent director system,improving the ownership structure of listed companies,perfecting the incentive and restraint system of the management,improving the company's governance ability and strengthening external supervision.The sixth chapter is the conclusion.It is a summary of the overall content of the full text.The research of this paper shows that there is a close relationship between the change of raised capital investment in listed companies and China's special institutional background and corporate governance structure.The reason that affects the listed company to raise fund to invest the change also is the focal point of our country company management.This paper takes Beijing Tianli as an example to analyze the reasons and consequences of the change of its raised fund investment,get inspiration: in order to standardize the use of raising money and improve the normal order of China securities market,promote the long-term healthy development of securities market in our country,it is necessary to standardize the listed companies to raise funds investment plan approval and supervision,optimizing enterprise raise money using procedures,improve the relevant legal norms and the establishment of the incentive and punishment system.Only by forming a set of effective internal checks and balances and self-restraint mechanism,and strengthening external supervision,only in this way can enterprises improve the status quo of raising funds frequently.