The Impact of Registration System Reform on Corporate Financing Efficiency—A Case Study on the GEM

Abstract

In this paper, a data envelopment analysis (DEA) model was used to study the impact of the registration system reform on corporate financing efficiency with enterprises of the Growth Enterprise Market (GEM) as examples. The paper starts with theories related to financing structure and efficiency, and expounds basic theories involved in the analysis process. Later in the empirical analysis part, relevant data of GEM enterprises from 2018 to 2022 were collected and processed to determine input indicators such as the turnover rate and output indicators such as the amount of capital raised in the initial offering for empirical comparative analysis. It is finally concluded that the registration system reform positively affects corporate financing efficiency. Specifically, after the reform, there are changes including more diversified corporate financing channels, improvement of pure efficiency and scale efficiency to different extents, lower financing cost, and higher financing efficiency. The findings can provide some reference for corporate financing, and some policy recommendations are lastly presented on other factors affecting the efficiency of registration system implementation, hoping to provide some insight into the development of securities market.