A Study On Financing And The Efficiency Of Enterprises Listed On The NEEQ In China

After the financial crisis in 2008, the economic downward pressure which China is facing is more and more severe. On the one hand, the traditional industry under the excess capacity and debt problems, has been unable to further drive economic growth; Emerging industries, on the other hand, the overall size is too small, although the development is very fast but the contribution to economic growth is still limited. However, the importance of Small and Medium Enterprises(SMEs) to make the economic growth stable and to alleviate the employment pressure has been the consensus of all countries. Therefore, to solve the financing problems within the development of SMEs and to improve the efficiency of the enterprise has been the widespread concern of society.Under this background, National Equities Exchange and Quotations(NEEQ) was expanded to the whole country from the four high-tech park in 2013. In 2015, the number of enterprises listed on the NEEQ explodes and 3557 enterprises was increased than the previous year. At the end of 2015, the number of listed enterprises has reached 5129, and it was 356 in 2013,14.6 times than 2013 in just two years, and the transactions and turnover of the share transferred are also showing a marked increase in the trend. With the fast rise in number of enterprises listed on the NEEQ, many problems have been exposed, in this context, discussing the financing efficiency of listed companies has been a very urgent issue.Firstly, this paper reviews the domestic and foreign related research results, and briefly introduces the overview of the development of the NEEQ market, the present situation and some problems that exist in it. Then based on the theoretical analysis, I choose Total assets, the proportion of the largest shareholder, main business cost and asset liability ratio as input variables, and choose Net profit growth, the main business income growth rate, total asset turnover and earning per share as the output variable. By using the DEA method, the efficiency from 2013 to 2015 of 99 enterprises listed on the NEEQ and 74 enterprises listed on the Growth Enterprise Market(GEM) in 2012 were compared and analyzed. The analysis results show that the enterprises listed on the NEEQ have a very low level of financing efficiency and in the nearly three years the improvement is not obvious and the financing efficiency of the enterprises listed on the GEM is also low but the financing efficiency is under continuous improvement. Finally, based on the conclusion this paper puts forward some effective suggestions on how to perfect the NEEQ market from three aspects.