|
Author(s): |
Junsheng Lu, Management School, Xiangfan University, Xiangyang, Hubei, China, 441053
Yanyang Zhu, Management School, Xiangfan University, Xiangyang, Hubei, China, 441053
Weiyi Wang, Xiangfan University, Xiangyang, Hubei, China, 441053 |
|
Abstract: |
Through the academic analysis, three kind of mechanism conduct the affiliation between IPO over-financing and corporate performance, which include: capital efficiency, business risk and executive turnover effect. According to the result of regression analysis on the data from listed companies in the GEM, we find that the rate of IPO over-financing has significant negative influence to the growth rate of EPS and ROA. Therefore, efforts to suppress IPO over-financing phenomenon can effectively improve the corporate performance of listed companies in the GEM and protect the interests of investors.
|