Research On The Behavior Of IPO Proceed Usage Changing Of Companies Listed On The SME Board

SME (Small and medium enterprise) board has opened since2004, the overall situationof using of the IPO proceed is good, but some companies have higher proportion of the IPOproceed usage changing and change the usage frequently within a short period after IPO.Combining statistical change of investment project of cause can be found, some of the SMEboard listed companies raise funds for other main business because part of external marketchanges. But some of the listed companies raise funds for capital subsidiary or foreignacquisitions of equity.This paper aimed at the behavior of IPO Proceed usage changing of companies listed onthe SME board from the current situation and SME board’s characteristics. This paper useddescriptive statistics and empirical test of combining methods based on the research of relatedtheories, application of objective data on change situation, characteristic, motivation systemresearch. This paper focused on the factors which affected the IPO Proceed usage changingbehavior, what effects will have on the company performance because of the changingbehavior.By the empirical test, the degree of change and chance are positively correlated with theownership concentration; the chance of change is positively correlated with the total excessfunds raised; the degree of change is negative correlated with the venture capital back;the degree of change is positively correlated with related party transactions.Comparing with the companies’ performance, the empirical results showed that,companies changing the IPO proceed usage had poorer profitability, growth capacity andsolvency than the companies promised to raise funds, but the difference of value of companywas not significant.According to the research results, combined with the reality of China’s stock marketcharacteristics, this paper presents suggestions on IPO Proceed usage of listed companies onthe SME board.