Problems in China’s Private Enterprises after They Realize Financing by Going Public and Precautions

Abstract

Most private enterprises face many problems after going public, such as the honesty and credit issue, private entrepreneurs robbing the listed companies’ capitals, and amounts of disposable capitals. All these problems are rooted in private listed companies’ irrational stock structure, poor financial management, and imperfect system. In order to avoid these problems in private enterprises after going public, it is necessary to perfect these private listed companies’ stock structure and stock relationship, improve their financial management, and execute strict and rational system.