Study On The Impact Of IPO Excess Raise Funds And Enterprise Technology Innovation

Under the background of national "double creation",technological innovation of enterprises has become the focus of research.As we all know,technological innovation is very important and plays an important role in promoting a country's economic growth.From the micro enterprise innovation needs financial support.Adequate capital is a necessary prerequisite for technological innovation.How can we better provide sufficient capital for technological innovation of enterprises? With the list questions,this paper research the impact of IPO excess on technological innovation of listed manufacturing companies.Firstly,this paper demonstrates the definition of IPO financing excess,the excess funds ‘s use and the situation of technological innovation.Secondly,under the analysis framework of financing constraint theory,firm behavior theory,the corporate innovation theory and entrustment-agent theory,this paper explores the relationship between IPO excess overfund and enterprise technological innovation.Then,using the listed manufacturing company data from 2007 to 2017 as the object of study,we construct an econometric model to test the relationship between the two.And this paper also examines the impact of adjusting variables such as the nature of property rights,institutional environment and ownership structure on the relationship between them.Then the robustness test and the brief analysis test of the difference company eventually,this paper through empirical research,draw conclusions and propose policy recommendations.From what has been discussed above,this paper has such as conclusions,the overdraft of equity financing can promote technological innovation,and it may not bring negative effects in specific industries and conditions.In manufacturing listed companies which need more R&D funds,they are more inclined to invest their over-raised funds in R&D.Second,the role of over-raised funds in promoting technological innovation is more obvious in non-state-owned enterprises.Under the circumstance that the financial system is not perfect enough,the huge amount of funds obtained by over-raising as a free cash flow of enterprises can relieve the financial constraints faced by private enterprises in R&D innovation to a certain extent.Thirdly,the effect of equity financing on technological innovation is more obvious in areas with better institutional environment.Furth,the ownership structure will affect the relationship between financing overdraft and technological innovation.Specifically,when the first largest shareholder holds a high proportion of shares,it will inhibit the positive correlation between equity financing and technological innovation.Institutional investors' higher shareholding will promote the positive correlation between equity financing and technological innovation.Fifthly,there is obvious heterogeneity in the impact of equity financing on technological innovation.There are also heterogeneity in R&D investment intensity of manufacturing listed companies due to their different industries,development cycles and company size.The policy suggestions drawn from the research conclusions are as follows: first,it is suggested that the regulatory authorities should prevent the over-regulation of the over-raised funds,strictly differentiate the heterogeneous enterprises,and encourage them to use the over-raised funds to invest in R& D and innovation projects instead of restricting them.Second,it is suggested to speed up the reform of the financial system and gradually eliminate the policy discrimination faced by private enterprises in financing.Thirdly,in the process of technological innovation,enterprises should attach great importance to the impact of institutional environment and always pay attention to the changes of institutional environment.In addition,relevant departments should create a good external environment for enterprise innovation activities,constantly establish and improve the relevant system,and escort enterprise innovation activities.Fourth,avoid short-term self-interest behavior of managers caused by excessive decentralization of equity,or value encroachment of small and medium-sized shareholders caused by dominant share.Establish a technological innovation-oriented corporate governance system,to enhance firm governance,and formulate a more reasonable and perfect ownership structure.