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

Since launched in May2004, SME has been seven years.530listed companies have financed in the SME market until the end of2010. Most of all are high-tech; high growths companies, and develop very rapidly. The performance is also very gratifying. To a certain extent, it eases the financing difficulties of small-medium-sized enterprises. However, over financing behavior of listed companies caused part of the financing funds misappropriated and idle, add liquidity, repayment of bank loans and trust management. It seems to us that many hidden dangers have been buried behind this prosperity. The problem of over finance of listed companies on SME resulted in excessive waste of resources, are easy to induce the stock market "bubble", damage the resource allocation and optimization function of the stock market, caused operating results landslides and resources allocation inefficient, and harmed the interests of investors. 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 markets, over finance caused by functional defects of intermediaries and encouraged by investor behavior. It is worth to us to explore the real reason for causing over financing behavior of listed companies, and to seek solutions to fight the irrational behavior.This paper mainly uses standard methods to investigate over financing issue of listed companies on SME in China. The basic thought of writing is starting from the general theory of over finance of the listed companies on SME, and then anglicizing over financing performance of listed companies on SME. This article explores the over financing causes of the listed companies on SME in our country, then learns the experiences from control over finance of listed companies in Western counties, and the raised the overall ideas and specific measures proposed of controlling over financing behavior of listed companies. 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 SME, which mainly includes the basic concept agreement and over financing theory of listed companies on SME. The third chapter is practical analysis of over finance of listed companies on SME in China, which mainly includes financing founds be changed arbitrarily, adding liquidity, repayment of bank loans and trust management problems of over financing behavior of listed companies on SME in China and the reason analysis of over financing behavior of listed companies on SME, including lacking of financing cost-conscious, excessive pursuit of scale expansion, three types of conflict of stakeholders, imbalance between capital structure, the securities regulatory system defects, lack of intermediaries financing binding and investor behavior and the structure irrational. The fourth chapter is experience and failure reference of controlling over financing behavior of listed companies in U.S, Korea and Germany. It mainly introduces controlling experiences of over financing behavior of listed companies in U.S and Korea, as well as the failure of controlling over financing behavior of listed companies in Germany, and views over learning from proposed prevention experience, specifically including establishing a business philosophy to protect the interests of investors, establishing trading system of market makers and bid a combination, establishing and improving the information disclosure system, strengthening the regulatory mechanism of increased supervision, and establishing a sound and a strict delisting system. The fifth chapter is controlling proposals of over finance of listed companies on SME in China, including overall vision and specific proposals to control over financing behavior of listed companies on SME in China.Through the research above, the countermeasures of controlling over the over financing behavior of listed companies on SME are as follows:①We should establish rational financing concepts, optimize the financing structure, and reduce the three types of conflicts of stakeholders in listed companies on SME;②We should improve the capital market structure and improve the regulatory mechanism of the securities market, specifically including improving IPO system, improving relevant laws and regulations, and improving a sound and a strict delisting system;③We should improve the functioning of intermediary to enhance the constraints of the financing of listed companies, including the introduction of the credit rating system, enhancing the responsibility of intermediaries and strengthening the supervision of intermediaries;④We should strengthen investor education,establish a rational concept of financing, and increase efforts to building the institutional investors.