A Study About The Issue Of Over Finance Of Listed On GEM In China

Since the GEM incepted,107 listed companies have financed in the GEM market before August 31,2010.As the issuing price is high,the phenomenon of raising super funds intensified.The over financing behavior of listed companies on GEM have created a very negative impact on the market,listed companies and investors.Over financing behavior of listed companies resulted in excessive waste of resources,are easy to induce the stock market "bubble" and damage the resource allocation and optimization function of the stock market.Over financing behavior of listed companies caused part of the financing funds misappropriated and idle,reduced the company's profitability,and caused operating results landslides and resources allocation inefficient.Over financing behavior of listed companies caused a lot of the financing funds idle,was contrary to the initial intention of investors and seriously harmed the interests of creditors and minority shareholders.This has greatly dampened the enthusiasm of investors and has an ultimate impact on the interests of listed companies.Many reasons contributed to this problem,such as over finance caused by the concept defects of listed companies,over finance caused by the regulatory system defects of securities market,over finance caused by functional defects of intermediaries and encouraged by investor behavior.It is practical needs of China's capital market to study reasons that causes over financing behavior of listed companies,and to seek solutions to fight the irrational behavior.This paper mainly uses standard methods,using qualitative and quantitative analysis means to investigate over financing issue of listed companies on GEM in China.The basic thought of writing is starting from the general theory of over finance of the listed companies on GEM,then anglicizing over financing performance and hazards of listed companies on GEM,and estimating the amount.This article explores the over financing causes of the listed companies on GEM in our country,then learns the experiences from control over finance of listed companies in Western counties,and then raised the objectives,the overall ideas,principles and specific measures proposed of controlling over financing behavior of listed companies.The goal of controlling over finance of listed companies on GEM in China is to expand listed companies rapidly and to meet their legitimate financial needs;to improve the relevant system of GEM,and strengthen the financing supervision of listed companies on GEM;to curb its excessive financing and eliminate the harm done by excessive financing acts.This paper is divided into five chapters,whose main contents are as follows:the first chapter is the introduction,and mainly introduces the research background,research significance, review and comments of the relevant literature,writing ideas,research methods and the basic framework.The second chapter is overview of the general theory about over financing of listed companies on GEM,which mainly includes the basic concept agreement and over financing theory of of listed companies on GEM.The third chapter is practical analysis of over finance of listed companies on GEM in China,which mainly includes financial performance,amount estimation and reason analysis of over financing behavior of listed companies on GEM in China.The fourth chapter is experience reference of controlling over financing behavior of listed companies in U.S.and Britain.It mainly introduces controlling experience of over financing behavior of listed companies in U.S and Britain,and views over learning from proposed prevention experience about over financing behavior of listed companies in U.S and Britain.The fifth chapter is controlling proposals of over finance of listed companies on GEM in China,including overall vision and specific proposals to control over financing behavior of listed companies on GEM in China.Through the research above,the countermeasures of controlling over the over financing behavior of listed companies on GEM are as follows:①We should reduce the three types of financial conflicts in the listed companies on GEM,establish rational financing concepts,and construct reasonable financing structure;②We should develop and improve the organization system,supervision system and information disclosure system of securities market, improve the issuing mechanism of new shares on GEM,and construct the conditions for issued shares market;③We should improve the functioning of intermediary organizations to enhance the soft constraints of the financing of listed companies;④We should improve investors structure and the quality of financial investors.