| Summary: | 碩士 === 輔仁大學 === 企業管理學系管理學碩士班 === 104 === After CSRC abolished the regular of “Limited issuing price”, China has encounter the situation that newly listed Chinese firms raise funds in excess of what is originally planed in IPOs, which call over-financing. In the past, scholars believe that over-financing brings unpredictable money make firms using them inefficiently, however, some scholars still believe that over-financing can ameliorate the situation of “financial constraint”, which let companies grasp the valuable investment opportunity.
As a country which face severe financial constraint situation, over-financing
brings huge impact to NSOE firms, this study investigate how different degree
of over-financing affects the initial return, long-term performance, investment-cash flow sensitivity and investment efficiency in sampling period
of 1990-2015, including 1834 IPO firms of A shares in Shanghai and Shenzhen
Stock Exchange and Growth Enterprise Market. The result indicates that without the conscious of financial constraint, over-financing has insignificant impact on the SOEs. However, for private IPO firms, the performance will be varies because of the different level of over-financing. The high initial return will be ameliorated by high degree of over-financing, however, unpredictable money that without a moderate plane make company using it inefficiently, therefore accentuated the investment-cash flow sensitivity and brings bad performance. In contrast, low degree of over-financing can’t improve the high initial return but attenuated the sensitivity, help ameliorate the adverse impact of the information asymmetry between issuing firms and outsiders and bring better long-term performance.
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