Research On The Relationship Between The Change Of Equity Financing Fund's Investment And Financial Performance Of Listed Companies

As one of the important financing channels of listed companies,equity financing aims at the sustainable development of enterprises and the further improvement of enterprise value.However,the use of the raised funds by the listed companies in China is not completely effective and rational.The behavior of changing the capital raised by listed companies may lead to the appearance of low investment efficiency.Meanwhile,it also violates the basic function of optimizing the allocation of capital market resources,which is not conducive to the sound development of listed companies and the healthy and stable development of capital market.Therefore,this paper intends to improve the efficiency of capital use of listed companies and promote the healthy development of the securities market by studying the relationship between the change of investment of raised funds and the financial performance of enterprises.On the basis of reviewing domestic and foreign literature,this paper selects 1,573 listed companies that raised funds in the capital market through IPO,additional issuance and rights offering from 2010 to 2013 as the whole and selected 276 listed companies that change the equity financing fund's investment as research samples.This paper compares and analyzes the change trend of the financial performance index-ROE(excluding non-recurring gains and losses)between the unchanged company and the changed company from raising funds to the furthest observation point.This paper also compares and analyzes the change trend of 276 changed companies of the financial performance index-ROE(excluding non-recurring gains and losses)before and after the change.Empirical study analyzes the relationship between the listed companies' time interval from raising funds to change the investment for the first time(SJJG),change frequency(BGPL),the degree of change(BGCD),whether or not to use overfundings in the process of change(SFCM),whether due to objective conditions' change(BGYY),and Whether to invest in the main business(BGTX)and the listed company's financial performance index-ROE(excluding non-recurring gains and losses),and the paper analyzes the relationship between the above explanatory variables and Tobin's Q value for robustness.The research results show that in the process of the change,in the case of other conditions limit,the shorter time interval from raising funds to change the investment for the first time will lead to higher performance of listed companies,but listed companies in the short term to change the investment after raising funds will cause the fluctuation of stock price in capital market and the decline of stock price;However,the greater degree of change and the more frequent change,it will have the more negative impact on the financial performance of listed companies.In the process of capital investment change,the use of overfunds,the change behavior due to the change of non-objective conditions and the investment in the main business after the change will have a greater positive impact on the financial performance of listed companies.Finally,according to the research results of this paper,the corresponding suggestions,shortcomings and future prospects are put forward.