IPO Effects Research In Hong Kong Growth Enterprise Market

This article investigates the change in operating performance of firms as they make the transition from private to public ownership in Hong Kong Growth Enterprise Market. A significant positive relation between post-IPO operating performance and the accumulated money/net asset before IPO ratio is found. Additionally, there is a significant relation between companies' registered location and IPO effects. There is no significant relation between equity retention by the original entrepreneurs and IPO effects, timing going public and IPO effects. Furthermore, this article also gives some advices for building the second board market in Shenzhen.