Research On The Financing Efficiency Of Small And Medium-Sized Enterprises Listed On NEEQ

Currently, China’s economy is going through a period when its speed is slowing down and its structure needs adjustment urgently. As an important component of our economy,small and medium-sized enterprises have a natural advantage in technological and institutional innovation when compared to large state-owned enterprises.Therefore,it has been an important strategic mission for us to encourage, support and guide the SMEs to further optimize their structure and meet their transformation goals,and then promote the development of these enterprises rapidly and healthly at this stage.And as we all knows,one of the main problems during the development process of SMEs is the financing problem.In 2006, the presence of NEEQ provides a new method to slove the financing problem of SMEs. But,at the beginning of its establishment, there were only few listed companies,so the NEEQ almost had no effect on improving the financing efficiency of SMEs. But after nearly ten years of development, NEEQ has become the main OTC market and the most important financing platform for SMEs. So, how important is the role that NEEQ playing in improving the financing efficiency of SMEs and what the NEEQ and other market participants can do to further improve financing efficiency of SMEs has become a hot point, and becomes the main research objective of this article. This paper is divided into six chapters and its main contents are as follows:The first chapter is about research backgroung and literature review. It analyzes the current situation of China’s economy and the relations between NEEQ and the improvement of SMEs’ financing efficiency, points out the meaning of this research subject. Then it sorts out the definition and research method of financing efficiency.The second chapter is about the theoretical basis of research, which brings forward the definition of NEEQ,SMEs and financing efficiency,and then discusses the relevant theories at home and abroad.The third chapter is about the present situation and problem of financing efficiency of SMEs in China.It uses financial evaluation indexes system to analyze the change of financing timeliness, cost and risk of a sample SMEs with the methods of descriptive statistics and comparative analysis,and come to the conclusion that NEEQ has played a positive role in improving financing timeliness and controlling financing risk of SMEs,but there is still a big disparity between its liquidity and Growth Enterprise Market’s due to institutional limitation of NEEQ,and the listed company’s profitability has not been improved significantly,these two aspects both have negative effect on financing timeliness. In addition, due to the lack of long-term debt financing and consciousness of optimizing the financing structure, debt financing accounts for a low percent, therefore financing cost declines in less marked degree.The forth chapter is typical case analysis and concludes the experience can be used for reference.This chapter picks out a SME- zhonghaiyang group, whose financing efficiency has been improved obviously after being listed on NEEQ and doing analysis on it, and the put forward that SMEs listed on NEEQ should pay attention to the improvement of profitability and the optimization of capital structure to future improve their financing efficiency.The fifth chapter is about the countermeasures and suggestions to improve financing efficiency.This chapter puts forward suggestions for NEEQ, SMEs and other market participants according to the results of statistical analysis and typical case analysis,which concludes that the NEEQ should lead in multi-layer transfer mechanism and differentiate its investment threshold,make full use of the market making system,improve the core competitiveness and profitability, innovative financing methods, optimize the capital structure, strengthen the management in order to control the risk of financing and so on.The sixth chapter is about conclusion and prospect.This chapter summarizes all the research results, and points out the futher research directions of this study and the development prospect of NEEQ.The innovations of this paper are mainly manifested in the following three aspects. First, this paper establishes a financial evaluation indexes system which can reflect the changes in the efficiency of SMEs listed on NEEQ more intuitively and multi-dimensionally. Secondly, the study period covering the expansion of NEEQ, trading settlement system and market making system implementation, which is of great significance for the evaluation of financing efficiency of SMEs listed on NEEQ. The deficiencies of this paper reflected in the lack of quantitative analysis of financing timeliness, and the quantitative relationship between the evaluation index and the financing efficiency is not clear. In the future, the author will further strengthen the research to strive for new breakthroughs in the above issues and make the results of the study more rigorous and scientific.