IPO Decision And IPO Industry Effect Research Based On Product Market Competition Game

Exploring the IPO decision-making mechanism and its industry effects from the micro level has always been a hot topic in academic circles and has received extensive attention and in-depth research in the academic community.In recent years,many foreign scholars have answered the IPO decision-making problems and industry effects based on product market competition,and deeply explored the product market motive behind them and the impact on the product market.These studies have shown that product market competition plays an important role in influencing corporate IPO behavior.After combing and analyzing the existing literature,this paper finds that there are several extensions to the existing research on IPO decision-making and industry effects based on product market competition.Firstly,the competitive environment of the product market in which the enterprise is located has the characteristics of continuous dynamics.But the research on the effect of IPO industry is mainly based on the competition of single-phase product market to construct a static game model to analyze the impact of IPO on the enterprise value and market share of competitors.This is not enough to describe the market competition environment that enterprises actually face.Secondly,the listing of the company will disclose relevant information about the product market,such as product innovation,profit,and competition strategy.This will also affect the company's listing decision-making.And due to the existence of information spillovers,there are strategic behaviors in the company's listing.The research that has linked the enterprise IPO decision-making problem with the product market competition mainly focuses on the impact of the product market competitive advantage on the company's listing decision after the IPO,and does not consider the impact of information spillover on IPO decision-making and the company's strategic listing behavior.Thirdly,empirical studies on the effects of IPO industry in China have mainly examined the industrial effects of IPOs in terms of short-term stock prices,market shares and operating performance,and considered the competitive effects to be the dominant effects of IPOs.Domestic scholars mainly study the IPO industry effect in China from the stock price,and the empirical evidence obtained is quite different,which may be caused by more factors affecting the stock price.The IPO firm will affect competitors' competitive strategy choices.When IPO competition effects dominate,the IPOs pose a threat to competitors,competitors adopt differentiated competitive strategies to maintain or increase existing market share.Research on the impact of IPOs on competitors' competitive strategies to develop research on the effects of IPO industry.This paper expands on the basis of existing research,and conducts in-depth theoretical research and empirical analysis on IPO decision-making and IPO industry effects based on product market competition.Firstly,This paper builds a two-stage Cournot competition model based on the competition of single-phase product market,introduces the uncertainty of product market demand,studies the IPO decision based on market timing and its impact on competitors'enterprise value and market share,and analyzes The effect of product market characteristics on this impact.Based on the conclusions of this model,this paper empirically tests the competitive effect of China's IPO industry from the short-term stock market performance and long-term business performance,and analyzes the impact of product market characteristics on the competitive effect.Second,the market competition of single-phase products constructed in this paper mainly studies the impact of IPO returns on IPO decision-making,and is a single-phase decision-making model.This paper puts the IPO decision-making into the multi-period product market competition game environment,and studies the impact of IPO infonnation disclosure on IPO decision-making and the company's multi-period listing decision.The inter-enterprise product market competitive industry profit has the mean return characteristics.This paper assumes that the industry profit obeys the mean return process with a non-zero mean.The company sees the right to go public as an American option,and when the industry conditions become better,it will exercise its power.By analyzing the option value and discounted cost of enterprises waiting for listing in each period,this paper obtains a three-stage game symmetric equilibrium strategy that all enterprises follow,and studies the degree of product market competition,discounted cost,external impact of industry profits,etc.Impact on the listing of critical conditions.Thirdly,this paper further builds a differential game model based on dynamic product market competition.At the same time,the IPO competition effect and information spillover effect are included in the model to analyze the impact of IPO on the steady-state equilibrium value of competitors,and the competitive effects are dominant and information respectively.The critical condition for the overflow effect to dominate.In order to test the external dominant effect of China's IPO,this paper uses the dynamic structuring method to estimate the implied parameters of the model,and studies whether the dominant effect of China's IPO is the competition effect or the information spillover effect from the perspective of product market competition strategy.Fourth,the IPO that weighs the IPO revenue and the information spillover cost can better fit the actual decision-making environment of the enterprise.This paper expands the existing research,builds a differential game model based on dynamic product market competition,and conducts dynamic values for IPO enterprises in two stages.Under the impact of technology innovation to improve profitability,enterprises weigh IPO decisions on IPO revenue and information spillover costs,and analyze the impact of corporate market share,technological innovation capability,and technology catch-up time on IPO decisions.Because IPO technology information overflow has positive externalities,this paper further analyzes the conditions of Pareto improvement in the enterprise after IPO,which is the impact of IPO on social welfare.The main theoretical research results of this paper show that product market competition is an important factor affecting IPO decision-making.In the fierce competition of product market competition,enterprises will choose to go public based on IPO strategic income;technology innovation enterprise IPO will take advantage and information in product market.The trade-off between spillover costs;the intensification of market competition has prompted competitors to strive to catch up with the technological innovation of IPO companies.The technical information spillover of IPO companies has shortened the technological catch-up time of competing companies,which in turn led to Pareto improvement in the industry.Empirical studies have found that China's IPO competition effect dominates,and corporate IPOs have a negative impact on competitors' stock prices,long-term operating results,and market share.IPO companies pose a threat to competitors.In order to maintain or increase their existing market share,companies adopt a more differentiated product market competition strategy.The market share profit conversion rate has increased,and IPO has promoted the improvement of output quality and efficiency.Under the background that China's economy is transforming from high-speed development to high-quality development,based on product market competition,research on IPO decision-making mechanism and its impact on competitors' business performance and product market differentiation competition strategy,play a role in financial market service entity economy It is of great significance to promote industrial upgrading and optimal allocation of resources to promote the improvement of output quality and efficiency.This is also the practical significance of this paper.Although the importance of this issue in the current economic environment is unquestionable,few academic studies have linked product market competition,IPO decision-making and its impact on competitors' product market competition to explore the connections behind it.Based on the dynamic product market competition,this paper studies the impact of China's IPO decision-making mechanism on its competitors,and supplements the existing IPO decision theory and IPO industry effect research,which has important theoretical significance.