Empirical Research on Arbitrary Alteration of Financing Capital Input Destination by the Listed Firms in China

This paper studies one hundred and eighteen listed companies that have announced alteration of financing capital input destination in 2004 as research subjects, collecting related financial data of the year before alteration, the year of alteration and the year after alteration of these companies. The paper is to adopt the method of paired samples t test to study how the alteration of financing capital input destination influences the performance of the listed company. Researching conclusion indicates that the alteration of financing capital input destination has negative effects on profitability, credit capacity and the growth ability; but the influence of the alteration of financing capital input destination to the asset management ability has not been verified. Finally, the paper proposes a few suggestions to standard the using of the financing capital of the listed companies because the alteration of financing capital input destination has negative effects.