Analysis Of Causes And Influence About Over-Raised Funds From ENJOYOR

In order to improve the capital market structure in China,"Chinese NASDAQ" GEM market was officially launched on October 30,2009.After 9 years' development,the number of listed companies has increased from the 28 to 742 by February 2019,the total market value of GEM market is about 4.2 trillion.The launch of GEM market undoubtedly provides financing channels for the entrepreneurial enterprises,small and medium-sized enterprises and high-tech industrial enterprises that need financing and development in China.However,at the same time,the phenomenon of "three-high" has been troubling GEM regulators.The phenomenon of high fund raising,high price-to-earnings ratio and high IPO price have been widely criticized since its establishment.In particular,the over-fund raising efficiency of GEM listed companies is low,which injures the rights and interests of investors.Therefore,how to improve the efficiency of over-raised funds,preventing the abuse of over-raised funds and avoiding the over-high rate of over-raised funds has been widely concerned.Through the analysis of previous studies,it is found that the basis for solving the above problem of over-raised funds needs to take the causes of over-raised funds as the starting point of the research,and then analyze the impact of over-raised funds on enterprises.However,scholars home and abroad only focus on the theoretical analysis of the causes and the effects of over-raised funds,there are few cases on the analysis of the causes and effects of over-raised funds of China's GEM listed companies,which results in the contradiction between practical needs and theoretical research.On the basis of previous studies,this paper selected ENJOYO(one of the first listed companies in GEM in 2009)as the research object to discuss its causes and effects of over-raised funds to provide references to avoid over-raised funds rate and rational utilization of excessive fund raising in GEM IPO process in China.This paper firstly teased out literature about the reasons and influence of high-raised funds home and abroad,at the same time on the premise of the domestic and foreign literature review,it reviewed the introduction to the theory of funds raised in excess of the cause and effect,to delve into ENJOYOR provides the theoretical foundation funds raised in excess of the cause and effect,the second of ENJOYOR company,analyzing the present situation and problems of over-raised funds with the theory and case method can be used to analyze deeply ENJOYOR funds raised in excess of the reason,the study found that ENJOYOR corporation super funds raised the main reasonsare:(1)the macro economy development result in rising stock prices;(2)the price inquiry mechanism in the new issue pricing system inflates the stock price;(3)investors' irrational investment behavior drives up the transaction price;(4)sponsor institutions gain benefits and boost the stock price.On the basis of the reasons of excess fund raised by ENJOYOR shares,this paper puts forward the influence of unreasonable utilization of excess fund raised by ENJOYOR shares on enterprise investment projects and financial status.Finally,on the basis of the above research,this paper puts forward some suggestions on how to prevent the over-raised funds rate and reasonably use the over-raised funds in the process of IPO.Based on the in-depth analysis of this paper,the implications for the same type of ENJOYOR enterprises on how to prevent over-raised funds rate in the IPO process are proposed as follows:(1)continuously strengthen the rational investment behavior of Chinese investors in the stock market,and correctly guide investors' investment;(2)to strengthen the supervision of the inquiry institutions,the CSRC should also introduce the inquiry institutions supervision system;(3)improve China's delisting system and increase the delisting threshold.This paper studies the causes and effects of over-raised funds applied by ENJOYOR,which can be used for reference in analyzing the over-raised funds rate of Chinese enterprises in the process of IPO,and has certain guiding significance for guiding enterprises to make efficient use of over-raised funds.