Abstract: Over-raised funds have become a common phenomenon in the initial public offering (IPO) process of the Science and Technology Innovation Board (STAR Market). However, can excessively raised funds alleviate the financial constraints faced by technology innovation enterprises in their innovation activities, thereby enhancing their innovation performance? Based on the data of listed companies on the STAR Market as of the end of 2023, this paper examines the impact of IPO over-raising on innovation output. The findings show there is a significant negative correlation between the IPO over-raising rate and the innovation output of technology innovation enterprises. The mechanism test results indicate that when the agency problem between corporate executives and controlling shareholders is more severe, the inhibitory effect of IPO over-raising on innovation output is stronger, suggesting that agency problems may lead to inefficient allocation of excessively raised funds. The heterogeneity analysis shows that the negative relationship between IPO over-raising and innovation output is more significant in enterprises with weaker technological innovation attributes, stronger motivation for sudden dividends, higher levels of R&D manipulation, and lower quality of information disclosure. In addition, governance mechanisms such as equity checks and balances, equity incentives, and media supervision can weaken the above-mentioned impact. Therefore, while strengthening the supervision of high over-raising phenomena and guiding the rational use of excessively raised funds, it is necessary to further improve the identification standards for“hard technology”of technology innovation enterprises, refine the information disclosure requirements for the use of excessively raised funds and R&D activities, and enhance the efficiency of resource allocation and the quality of enterprise innovation.

Key words: STAR Market, over-raised funds, innovation output, supervision