Research On The Use Efficiency Of Nanfeng IPO Raised Funds

The birth of GEM has provided a large number of small and medium-sized high-tech enterprises with financial support for their development.However,the development path of GEM has not been smooth.After the launch of GEM,many listed companies have obtained over-raised funds,and the amount is huge.With huge raised funds,it is worth studying how the listed companies use the raised funds efficiently.Nanfeng Co.,Ltd.is one of them.As a family-owned company,since its listing,the company has seen a large amount of idle funds raised,the expected return of investment projects does not meet the standards,the project location of the fundraising project is randomly changed,and the project construction period has been greatly extended For many other issues,the use of raised funds did not improve the business situation of the enterprise,but inhibited the growth of the enterprise.Chinese scholars' research on raised funds is mainly focused on the reasons for the change of raised capital investment and the impact on the performance of the company before and after the raised funds,and the use efficiency of the raised funds in the form of cases is not deeply explored.The stock is used as a case to study the efficiency of the use of raised funds.This article first summarizes the definition of the use efficiency of raised funds on the basis of previous studies,and secondly takes the asymmetric information theory,resource allocation efficiency theory,and dominant ring theory as the theoretical framework,taking Nanfeng Co.,Ltd.as the research subject,investing from the raised funds The sufficiency of the sufficiency,the effectiveness of the output,and the ratio between the input and the output of the three aspects of the research and analysis of the use efficiency of the raised funds,so as to obtain the results of low efficiency of the use of funds raised by Nanfeng shares.Through the research on the use efficiency of the funds raised by Nanfeng IPO,the following conclusions can be drawn: During the use of funds raised by Nanfeng,the construction period of the project was prolonged due to the change in the implementation location of the project,and a large amount of the raised funds was idle.Fully invested in the project,the adequacy of the raised funds was insufficient;the extension of the construction period caused the investment project tofail to bring planned benefits to the enterprise,and the raised funds deposited in the bank account failed to exert its value,damaging the investment The efficiency of the raised funds is insufficient.Through a vertical analysis of Nanfeng itself and a horizontal comparison with the same industry,it can be seen that the ratio between the funds invested and the output raised by Nanfeng's IPO is relatively low.It can be concluded that Nanfeng's overall use of the funds raised in the IPO is inefficient.