GEM Listed Company Ipo Funds Raised Over The Formation And Inefficient Investment

This paper analyzes from 2009 to the end of 2013 of Shenzhen Stock Exchange listed 355 companies listed on GEM,Combined with relevant literature, the theory of corporate finance, capital markets, in order to analyze the GEM irrational emotional factors resulting in companies listed on GEM IPO over-subscription, the subsequent use of these important impact on the company raised funds to over-investment behavior of the main line. Firstly, the use of Pearson correlation matrix to analyze the proportion of sample firms in the largest shareholder, the company pre-IPO issue priceearnings ratio, a measure of capital market IPO raised over irrational emotions multiples, the Company issued a total number of shares and the company’s assets and other variables relationship with the company and the company raised funds over investment behavior. Secondly, the use of multiple regression analysis method focuses on interpretation of irrational sentiment for listed companies to raise funds over the degree of influence over listed companies to raise funds and the degree of influence over the company’s investment behavior. Empirical studies have found that companies listed on GEM irrational market sentiment, the higher, the more severe the degree of their excess funds raised, over-investment companies are also more significant.Listed Companies’ Capital Market GEM IPO funds raised over the prevalence of the phenomenon and the impact of the excess proceeds to the company of over-investment behavior, the authors believe the company raised funds: one to improve the capital market disclosure system, improve the company’s disclosure of information transparency; Second, we must improve the GEM stock issuance system, ultra raise funds to solve the problems of listed companies; Third, we must increase the proportion of placement under the net, mitigating the effects of irrational market sentiment. The overinvestment in a listed company proposals: one to improve the company raised funds over the supervision mechanism, establish a reasonable incentive policies; Second, we must plan ahead to use raised funds raised funds to improve the supervision of investment; Third, we must improve corporate governance structure, play an important role of independent directors.