The Study On Government Regulation, Political Relation And The IPOs Long-term Performance Of Listed Company

Because of the special mechanism background in Chinese security market, there are countless connections between the government and listed company. For the government, the listed companies are regarded as the pillar of economy, have very important significance to the government, no matter in terms of economy and politics. So government unavoidably set out carrying various influence on listed company to strengthen their competition among the whole market. For listed company, their active quest for government resources symbolizes otherness.I select listed firms listed during 2001-2003 as our samples to find out the relevance of government regulation, political relation and IPOs long-term performance of listed company in China, with a time span of 1-Jan-2001 to 31-Dec-2006. Our result shows that the proportion of government finance expenditure in GDP is negatively related to IPOs long-term performance of listed company, while the proportion of the Organs of Public Security, People's Procuratorate and People's Court in government finance expenditure is positive correlation related to the latter. The impact effect of government regulation on IPOs long-term performance of state-owned and private listing companies are different. IPOs long-term performance of listed company is also affected by regional economics, and the influence degree in east China is more obvious than in central and west China.