EVALUATING EFFICIENCY IN CORPORATE FINANCING: A CASE STUDY OF THE GEM REGISTRATION SYSTEM REFORM

Abstract

Capital, as a vital element in business operations, serves as the lifeblood of enterprises. The prevailing objective of corporate operations revolves around the pursuit of capital value maximization, achieved primarily through capital appreciation in financial activities. Sustaining capital appreciation necessitates the ongoing operation of capital, encompassing production, business activities, and investments, all of which rely on surplus funds held by enterprises. When enterprises face shortages of capital to meet their investment or operational requirements, financing becomes a crucial consideration. Since the inception of the Shenzhen Stock Exchange and the Shanghai Stock Exchange in 1990, China's stock market has evolved into a pivotal capital market, offering a primary channel for enterprise financing in the market economy. Throughout the stock market's development, the paramount role of financing efficiency in enterprise success has become increasingly evident. Enterprises with high financing efficiency can access funds quickly and cost-effectively, fulfilling their capital needs with reduced risk. To explore corporate financing efficiency comprehensively, this study draws upon previous theories and cost-effect analysis, aiming to provide insights and research into this vital aspect of business operation.