Analysis On Fund-raising Report Of Growth Enterprise Market Listed Company A

With an example of Company A under the background of excess fund-raising in GrowthEnterprise Market, the paper analyzes fund-raising report of listing companies in GEM, andreveals the fund-raising problems existed in the report, summarizes the motivation and meansof listed companies’ window dressing, and puts forward countermeasures and suggestion.Investing trend of fund-raising and expected return in fund-raising report of listedcompanies is an important pricing basis in companies’ IPO, and an import investment reasonfor investors. Inadequate disclosure of information, artificially overstating total investment,and window dressing project financial benefits, not only make the fund-raising plan inProspectus not credible, but also make regulators’ review of the Prospectus meaningless.Further, it makes the subsequent excess fund regulation into an awkward situation. Therefore,research on this topic has a certain theoretical value and practical significance ondistinguishing authenticity of fund-raising report, supervising and regulating listingcompanies’ fund-raising.The paper selects company A’s fund-raising report as the research object. Base on theoriginal framework of company A’s fund-raising report, by tracking contrastive analysis onfund-raising report plan and actual implementation after listing, the paper finds company Awindow dressed the fund-raising report during IPO, inadequately disclosed industrycompetition situation, omitted or concealed project risk, artificially overstated investment,overestimated revenue, underestimated cost, and window dressed the profits of the investmentproject. Later, the company cannot invest and use the funds in accordance with thecommitment in fund-raising report and plan. The project launched slowly, and hardly canachieve the profit target in fund-raising report. And then through various means, as the capitalreplacement, supplementary liquidity, changing investment project, etc, diverting raised fundsin disguised forms. Based on study on Company A’s fund-raising report, using the concept ofthe financial statements window dressing, the paper comes up with the concept offund-raising report window dressing, summarizes the motivation and means of listedcompanies’ window dressing, combines the authors’ auditing and financial experiences,gradually puts forward countermeasures for fund-raising report recognition by focusing on abnormal signals in fund-raising report and financial information.Research method of this paper mainly adopts case study. Innovation mainly lies in twoaspects. One is the research angle of view, in practice, the fraud case of domestic capitalmarket listed company been disclosure are generally financial statements fraud, profitsmanipulation, but few are analysis on fund raising report, the non-financial information. Theother is by case study of Company A’s fund-raising report, using the concept of the financialstatements window dressing, the paper comes up with the concept of fund-raising reportwindow dressing, summarizes the motivation and means of listed companies’ windowdressing, and put forward countermeasures for recognition with a certain extent of innovation.The limitations of this paper lies in: All analysis data of this paper comes from ListedCompany Statement of Company A. Restricted by data and personal level of expertise, someanalysis is not in-depth and thorough enough, and the case study is given priority to analysis,which must be subjective in induction, so this case study is more likely to be challenged forthe internal validity. For external validity, the induction only concerns window dressinginvestment project for fund raising of company A during IPO, the problem may notnecessarily be universal, therefore external validity is also greatly reduced. Teachers pleasecriticize and correct the deficiency of this paper.