Over-financing,Inefficient Investment Of Listed Companies And Moderating Effect Of Corporate Governance

Over-financing means that the actual amount of financing is larger than that in the prospectus.Actually,both the inadequacy of the issuing system's marketization reform and the uselessness of market-oriented pricing mechanism are the key causes of over-financing.In addition,the promotion of issuers,sponsors and underwriters together with thick speculation atmosphere boost the over-financing in the market as well.There are 768 enterprises listed on the stock market in china,725 of these have got over-raised funds in the process of listing,and the maximum ratio peaked at 738%.A large number of social idle capital in the form of over-raised funds flows into a small number of listed companies,it will not only harm the allocation of market resources,but also reduce the efficiency of investment,damage the interests of investors.This paper selects 768 companies as the research objects,which were listed on main board,GEM and SME from 2010 to 2012,using Richardson model to calculate the degree of non-efficiency investment in listed companies,we divides them into under-investment ones and over-investment ones according to the results of positive and negative residuals.Then we construct the regression equations to estimate the relationship between over-financing and non-efficiency investment.The results shows that there is no significant correlation between the ratio of over-financing and under-investment,while over-investment has a significant positive correlation with over-financing,which indicates that the deeper the degree of over-investment,the higher the level of over investment.Further,we introduce the adjustment variable as well,discussing the influence of corporate governance on the sensitivity of over-investment to the ratio of over-financing.The empirical results reveals that descent corporate governance can restrict the management and ease over-investment which is caused by over-raised funds.In order to restrain the inefficient investment of listed companies and regulate the inefficient allocation of resources on capital market,we put forward relevant policy recommendations from four aspects according to the results of our research,which are system reform,market optimization,enterprise management and investor guidance.