Research On The Over-financing In The GEM Listed Companies

October30,2009is a significant day that should be remembered in mind, in this day,the Growth Enterprise Market began to run transactions officially. The launch of theGrowth Enterprise Market can be regarded as a "Decade of sword". Due to the hugesuccess of the American NASDAQ, the Chinese people began to explore how to copy theNASDAQ mode and how to support the development of advanced technology businessesby the society financing of the securities market.Before August1,2012,345listedcompanies have landed the Growth Enterprise Market. The Initial Public Offering (IPO)raises a total of227.261billion RMB funds. Among this funds, the over-financingamount to126.073billion RMB, which account for55.47percent of the total funds. Thehigh over-financing ratio has a direct relationship with the follow of the investors andhigh issue price. The over-financing funds are not fully utilized, and some even aremisappropriated, which greatly reduces the efficiency of the usage of huge amounts ofmoney. It reduces the company’s operating results. The behavior of over-financing maylead to the waste of resources and the stock market bubble, meanwhile, it harms theinterests of investors, reduces the investors’ confidence in the market and goes against therational allocation of resources, which will hinder the sustainable and healthydevelopment of China’s securities market.Using the method of combining qualitative and quantitative analysis, This thesismainly studies the behavioral problems of over-financing behavior in the GEM listedcompany. This thesis’s framework is as follows: Based on the general theories ofover-financing problem, this thesis adopts a large collection of financial data from a largenumber of listed companies and analyses the domestic and foreign literatures. On the onehand, this thesis qualitatively analyses the cause of over-financing and the condition ofthe usage of funds. It also analyses the problem about the investment orientation. On theother hand, this thesis quantitatively analyses how the over-financing behavior has aneffect on the company’s results of operations and stock price market. The thesis isdivided into five parts, its main contents are as follows. The first part is an introduction,which describes the significance of the research background, the research at home andabroad for over-financing behavior in the GEM listed company, the research ideas and methods, the thesis’s structure, the difficulties that may occur in the study innovation andshortcomings. The second part is the theoretical basis of over-financing behavior in theGEM listed company. It issues including finance theory and the theory of corporategovernance. The third part is an overview of over-financing behavior. This chapterdescribes the concept and the causes of over-financing. It also analyses the existingproblems and the status quo of over-financing. The fourth part is an empirical design ofover-financing in the GEM listed company, which includes the research hypothesis,sample selection and data sources, the test model and variable description, an Empiricalresults and analysis of over-financing. It obtains the conclusion that over-financing has anegative effect on the company’s results of operations and stock price market. The fifthpart is the conclusions and countermeasures of over-financing in the GEM listedcompany. The thesis presents a four-point suggestion which planning for the use ofover-financing, selecting and managing the investments and projects, improving themarket system and strengthening the market supervision.