Empirical Research On The Financing Efficiency Of High-tech Industry Of GEM

The development of high-tech industries can reflect a country’s comprehensivecompetitiveness. After years of development, China’s high-tech industry has madesignificant progress. As the most important issue of high-tech industry, financingproblem has influenced and restricted the development of high-tech industry. To solveit, domestic and foreign scholars have done some researchs in different angles, suchas financing method, financing environment and financing strategies. From the angleof the financing efficiency, this paper makes a research on the financing efficiency ofhigh-tech enterprises listed on the Growth Enterprise Market (GEM), and putsforward some feasible suggestions in hope of making some useful references onimproving financing efficiency of the high-tech industry in our country.This paper first analyzes the present development situation and financingsituation of China’s high-tech industry, and finds that the industrial structure is notreasonable and regional development is not balanced, despite the rapid developmentof China’s high-tech industry. In terms of financing, problems of insufficient capitalinvestment, unreasonable financing structure and imperfect financing environmentstill exist. Then, based on the theory of capital structure and taking the high-techenterprises listed on the GEM as the research object, this article reflects the financingpricing efficiency through IPO underpricing, selects six indexes to evaluate the capitalmanaging effect of high-tech industries. The study shows that financing efficiency hasnot been effectively improved after high-tech enterprises listed on the GEM. On thisbasis, this paper deeply discusses the macro factors and micro factors that affect thefinancing efficiency, establishes multiple linear regression model with ten variables ofmicro factors, and makes empirical analysis of financing efficiency of277high-techenterprises on the GEM market to find effect degree of each factor. The empiricalresult shows that the most influential factor is firm’s growth and profitability, followedby refinancing costs and repayment ability, then capital structure and enterprise scale.Furthermore, firm’s growth, profitability and enterprise scale are positively related tofinancing efficiency. refinancing costs, repayment ability and capital structure arenegatively correlated. According to the study results and the macro factors, this paperfinally puts forward some suggestions about how to improve the financing efficiencyof high-tech industry of GEM in China.