Do Excess Funds Make Financially Constrained Firms Better Off? Evidence from IPOs in China
研究中国IPO中超额募集的资金是否被浪费或用于增长，发现超额资金缓解了融资约束、降低了债务成本，并提升了上市后经营业绩，尤其对融资渠道有限的公司帮助更大。
Firms in transition economies often suffer financial constraints. In initial public offerings (IPOs), however, many newly listed Chinese firms raise funds in excess of what is originally planned. This paper examines whether these excess IPO funds are wasted on value‐destroying spending or enable firms to take growth opportunities. After controlling for the endogeneity issue, we find that Chinese firms with excess IPO funds have better post‐IPO operating performance, especially those with limited financing channels. In revealing the mechanism, we find that excess IPO fundraising alleviates financial constraints and reduces the cost of debt.