The Research Of The Impact Of Usage Of Funds Raised Through Equity Refinance On Industrial Transformation And Upgrading

Recently,the growth of China's economy has slowed down.Under the pressure of China's economy going down,the government has put forward the strategy of industrial transformation and upgrading.As China's stock market becomes more and more mature,Equity financing has become an irreplaceable way for companies to raise money.Among it,equity financing is the most important way.Many experiences show that equity financing play an important role on industrial transformation and upgrading.It is significate to study the impact of equity refinancing on industrial transformation and upgrading.Based on the present situation of China's economy,this article analyses the necessity of industrial transformation and upgrading for development of China's economy.Firstly,on the theoretical aspect,the article addresses the relationship between industrial transformation and upgrading and equity financing.Secondly,the influences made by equity refinancing on industrial transformation and upgrading are analyzed through empirical ways.And at last the conclusion is that not all equity refinancing can enhance the transformation and upgrading.Specifically,the refinancing used to M&A in both traditional and emerging industry can help the industries' transformation and upgrading,but if the companies in traditional industry make use of the money to expand capacity,it will hinder the process of industrial transformation and upgrading.This article creatively sorts out the money raised through equity refinancing by the usage,and examine the effects on the transformation and upgrading of both traditional and emerging industries.The dissertation can be divided into four parts.The first part is introduction,and it tells about the background of the study and the methodology.The second part is the literature review,which gives a back view on industrial structure evolution theory,finance theory and previous research on the relationship between industrial structure and refinancing.The third part is the empirical study,which makes use of the tool of econometric analysis to examine the effects of refinancing on the industrial structure.It leads to two conclusions,one is that the refinancing used to M&A in both traditional and emerging industry can help the industries' transformation and upgrading,the other is that if the companies in traditional industry make use of the money to expand capacity,it will hinder the process of industrial transformation and upgrading.The causal analysis is also included in this part.The fourth part gives the summary of this paper and makes a prospect view on the research in future.