GEM-Listed Companies Over-Raised And Over-Investment Analysis

In order to solve the problems of small medium enterprise and the construction of a multi-level capital market. China officially launched the Growing Enterprises Market (GEM) on October 30,2009.In order to solve direct financing of the small and medium-size enterprise, Chinese GEM market will be put out imperatively, also for the construction of a multi-level capital market in china took a key step. However, there are problems with the Growing Enterprises Market operation, one of the most notable is the Over-raised phenomenon in the fields of Growing Enterprises Market. Over-raised is the GEM joint-companies raise money than project, the money to rise much faster than expected. Over-raised brings joint-companies to use over-raised funds inefficient problems, such as, over-investment and under-investment. Also it exacerbated the financing problems of other really need financing small and medium-size enterprises. At present, the phenomenon of Over-raised has caused including regulators, listed companies, scholars and wide range of social concerns.This essays takes our country the GEM listed companies in 2009-2013 of 355 sample companies are the research object, it studied the phenomenon of Over-raised with the GEM listed companies and the Over-raised phenomenon of enterprises investment problems. Based on the referencing others’work, I research and careful analysis the reason of Over-raised in GEM listed company and the GEM listed company Over-raised funds of the present situation, also, I using empirical methods to verity the GEM listed companies Over-raise excessive investment problems. In order to solve the problems of Over-raised and how to effective use Over-raised funds, this essay has five parts to explain details and will give effective suggestions.This essay firstly combed the phenomena of over-raised and theories of investment, also, describe the present situation of GEM in our country, the situation of GEM Over-raised, and investment. On this basis, this essays theoretical analysis the reasons of GEM Over-raised and show the relationship between Over-raised and over-investment, it shows clearly the existential reasons of Over-raised and publisher’s. Also, the phenomena of Over-raised exists to certain extent caused the problems of Over-investment in enterprises. Based on the above theoretical analysis, this essay designed the empirical research. After suggestions, according to Richardson(2006), established empirical model from an appropriate model and related theory, with the GEM in China by the end of the 2013 listed companied as the research object, the selection of 467 samples, it using stata11.0 analysis the model, the empirical test for the Over-raised of GEM listed companies, it influence the enterprise Over-investment.Therefore, the phenomena of Over-raised are more serious, enterprise Over-investment more serious.Finally, on the basis of research in this dissertation, this essay trialing to purposed the solutions of GEM listed companies in China and the suggestions and policies of the Over-raised. Also, it shows how to effective use Over-raised funds and raising supervisory suggestions. I sincerely hope that the relevant countermeasures and suggestions to solve the problems of GEM listed company Over-raised funds, increasing the service efficiency of Over-funds funds, and optimization function on the GEM market in China.