The Study Of IPO Effect In The Listed Company Of The Small And Medium-sized Enterprise Board Of China

With the development of economic and the reform and opening-up in China,the Small and Medium-sized Enterprises(SMEs) become more and more stronger and play an important role in the national economic and the field of technology innovation.But it's a pity that the financing difficulty has restrict themselves to develop.Our country draw lessons from abroad to build the Small and Medium-sized Enterprise Board in order to offer the financing platform and help the SMEs to improve their financing structure,performance and competitive strength. However,a lot of studies have proved the fact that not only the list companies in the A stock market of China but also in the developed capital market abroad both exist the IPO(Initial Public Offering) Effect.That means the performance of the listed companies doesn't get improved and even decline after IPO.In that case,how about the listed companies in the SME board and do they also exist the IPO effect? This paper try to consider factors of both the special system environment and the development of the capital market in China,and use the Principal Component Analysis Method to build the aggregative financial indicator as to delegate the company's performance. In this study,we get the conclusion that the performance ascend before IPO and descend afer IPO and have two inverse "V" shape.At the end,we analyze the reasons which cause the variation tendency in the SME board and give some suggestions to improve the IPO in the SME board and also hope to give some reference for the IPO in the Second Board.