Studies On The Motivation And Operation Performance Of The Listed Companies’ Behavior Of Changing The IPO Investment Project

The main purpose of this research is to find out the factors which can affect companies to change their IPO investment project and the consequences of this act can do a lot to these companies’performance. Chinese Listed Companies Listed financing projects follow stocks financing system. Listed companies will be required prior to use IPO to raise funds ahead of the project, and do feasibility analysis report. This system is designed to ensure the efficient use of funds raised. But since 1993, giving rise to our listed companies to invest in the IPO Prospectus change phenomena.Such acts still exist in the strict use of funds under the regulations,. It constitutes a violation to spirit of ContractOn the other hand the motivation to invest in fund-raising changes can be divided into two types,goodwill changes and malicious changes. The so-called goodwill refers to the change that management or major shareholders of listed companies for maximizing corporate value and shareholders angle change the projects which is not suitable for investment projects,.The change behaviors can make more efficient use of funds; and malicious changes refers to the management or major shareholders of listed companies don’t change the IPO investment project under the motivation to maximize enterprise value and shareholder value, which is called to malicious changes.In this paper, research methods normative research and empirical analysis base on the data of the behavior of changing the IPO Investment project from 2008 to 2010. Testing the hypothesis with three models, reaching the following three conclusions:(1) The research about the factors which can affect the listed companies change their IPO investment project verifies that the indicators as follows can be influential. Like the rate of performance change before and after the IPO; The degree of competition in the industry; The degree of control and ownership separation.These factors all can affect IPO invest project.Their relationship can be described into that the worse of the performance change before and after the IPO,and the higher of the degree of competition in the industry and the degree of control and ownership separation,the probability of changing IPO invest project is higher.In addition,the changing probability and asset size are positively correlated, and the inverse relationship with the oversubscription ratio and debt ratio.(2) Obtaining the key indicators of identifying goodwill changes and malicious changes by the empirical analysis.The key indicators is rate of performance change before and after the IPO, The degree of control and ownership separation and the investment direction after changes.The goodwill changes probability and the rate of performance change before and after the IPO are positively correlated;The malicious changes and the degree of control and ownership separation are positively correlated;The key indicator investment direction after changes is very important in identifying the changing motivation.(3) The influence of different motivation to the performance after changing IPO invest project is different.The goodwill motivation can enhance the corporation performance otherwise the malicious motivation can lower the corporation performance.The conclusion above can help regulatory authorities and investors further recognized the changing behaviors.For regulators, in the formulation of policy should not blindly invest in fund-raising limit change, but change should analyze corporate motivation to develop policies based on three key indicators, so that changes can change the corporate goodwill toward improving business performance, make unwanted changes companies can’t implement the change behavior. For investors, Change behaviors should not be judged simply.Investors should judge companies based on the three key indicators above, to make sure if it is well-intentioned or not.This content is divided into five parts.The first part is about the background introduction, mainly introduces the research background, problem and logical framework.The second part is the literature review.Focusing on the IPO and the use of IPO proceeds.Summarizing the literature theory.The third part is the designation of empirical research.Building three models to answer the three questions. Model I is to find out the reason leading to the changing behaviors; model II is to answer what is the key indicators which can identify malicious changes and goodwill changes; model Ⅲ is to answer the influence between two different motivations and the performance after changing IPO invest project.The fourth part is the empirical research resultsThe fifth part is the conclusion and recommendations. Through a combination of empirical and theoretical results, recommendating for investors and regulators...