Research On Financial Efficiency Of Equity And The Factors Of Its Influence Of NEEQ Listed SMEs

SMEs(small and medium-sized enterprises)are the pillars of Chinese economic development,whether SMEs can develop well plays an important role in Chinese economic growth.However,a large number of small and medium-sized enterprises miss development opportunities or go bankrupt due to financial difficulties.So solving the problem of financial difficulties is crucial to the healthy growth of small and medium-sized enterprises.Therefore,the NEEQ came into being as a financing platform for SMEs.NEEQ has provided a large number of financing opportunities for SMEs.By the end of 2018,the number of NEEQ listed companies had reached to 10,691,with a total market value of 3,487.26 trillion RMB.In recent years,the growth of the NEEQ has gradually stabilized,and scale of the listed enterprise declined for the first time in 2018.As an important component of China’s multi-level capital market,the steady development of the NEEQ is of great significance to the construction of China’s multi-level capital market.Capital market efficiency of equity financing is reflection of the capital market,and it is an important indicator whether the capital market can better serve SMEs or not.Therefore,as the most basic function of capital market,the research of equity financing is meaningful.Refer to the existing theories of equity financing efficiency,factors and research methods,this paper analyzed the advantages and disadvantages of various research methods,combined with the current financing status of the NEEQ,finally adopted the DEA model as the research method,and adopted the regression analysis method in the subsequent research on the influencing factors.The samples were selected from the enterprises listed on the NEEQ and publicly issued new shares in 2016,and 347 qualified samples were finally determined.When selecting input and output indicators,we refer to the existing research that adopts DEA models,and finanally adopt the total assets,operating cost and asset-liability ratio as input indicators,select return on equity,turnover of total assets and growth rate of operating income as output indicators.Then,the influencing factors on equity financing efficiency is investigated.The comprehensive financing efficiency is taken as the explained variable and related influencing factors is taken as explaining variable to conduct regression.Through the above research,this paper finally concludes that the equity financing efficiency of listed companies in the NEEQ is not high,and the value of comprehensive financing efficiency in 2018 is only 0.2.Further analysis find that the reason of the low comprehensive financing efficiency is mainly due to the low pure technical efficiency,and the pure technical efficiency value in 2018 was only 0.271.Scale efficiency is better.Most enterprises are in a state of relatively high scale efficiency,and the value of scale efficiency in 2018 is 0.779.We make a comparison of the financing efficiency before and after the issuance of new shares,we find that comprehensive financing efficiency and scale efficiency in the year of issuing new shares have fallen sharply,and the pure technical efficiency is relatively stable,in the analysis of the scale efficiency,the majority of enterprises are in scale efficiency decreasing state,this also explains why financing in 2016 results in the decrease of scale efficiency and comprehensive efficiency,when the growth of enterprises scale slowed,the scale efficiency improved.Finally,the regression analysis of the comprehensive financing efficiency shows that the comprehensive financing efficiency of an enterprise is positively correlated with its operating capacity,profitability and development ability,and negatively correlated with its scale and asset-liability ratio.The result of liquidity of asset and ownership concentration are different in manufacturing industry and non-manufacturing industry.On the basis of regression results and DEA financing efficiency of sample companies,this paper finally puts forward relevant suggestions on development of enterprise and the construction of the NEEQ.