Research On Use Efficiency And Economic Consequences Of Ipo Fund Raised By Sichuan Kelun Pharmaceutical Co.,Ltd

As the most active and innovative micro-subjects,the enterprises of SME board(small and medium enterprises board)have become more and more vital in Chinese economic system.However,relative to other sectors,SME enterprises with private enterprises and small and medium-sized enterprises as the main body have mostly come from family-owned enterprises.Smaller scale,undeveloped development,and financing difficulties have always been the bottleneck restricting the development of SME enterprises.The problem of financing difficulties is particularly prominent.Since the China Securities Regulatory Commission reviewed the establishment of the SME segment in May 2004,SME enterprises have gone public through equity financing,and the oversold phenomenon of SME enterprises and the efficiency of the use of funds have been criticized by various sectors of the community.How to fundamentally improve the efficiency of the use of funds raised by SME enterprises has become an urgent issue to be studied.Therefore,the research on the use efficiency of fund raised by SME enterprises has a strong theoretical value and practical significance.This article will use a combination of theoretical analysis and case study methods to discuss the inquiry system factors,sponsor institution factors,issuer factors,and policy favorable factors arising from the IPO over-raised funds of SME enterprise SICHUAN KELUN PHARMACEUTICAL CO.,LTD.The three dimensions of capital investment,equity investment and capital use compliance of the raised funds are to systematically sort out and analyze the inefficient capital use of raised funds,as well as the resulting economic and financial consequences of operating performance decline,financial risks,and encroachment on the interests of small and medium shareholders.At the same time,this paper uses information asymmetry theory,principal-agent theory and related mergers and acquisitions theory to analyze the main reasons for the above-mentioned non-efficient use of raised funds.In view of the important role of the securities market mechanism and the internal corporate governance mechanism in mitigating the above issues,this paper concludes with a brief recommendation of improving the market mechanism and strengthening internal corporate governance to increase the efficiency of corporate fundraising investments.