Mode And Operating Performance Of Private Enterprises Listed

Since Reform and Opening-up, private enterprises in China have great development, and at the same time, they also face some constraints among which the financial constraint is a very important one. As we all know, financial difficulty is now the main bottleneck which restricts the development of private enterprises. The Bond market in China is not very perfect just because of its short development——ten years around,but IPO is the most important way to raise money for the business who want to pursue a high-speed development. And IPO plays a key role both in expanding scope of the business and in seeking a high profit. Due to the flourishing development of the Bond market recently,some private enterprises have realized the importance that they should use the Bond market to promote their development and find kinds of methods to raise money by way of going on market.We find that there are always big differences in achievement among different private enterprises who have had their IPO. So,what is the factors which affect the achievement of the nongovernmental businesses who have appeared on market? business strategy or management? or because of other reasons? According to this paper,there maybe a deep reason which causes different achievement. Among nongovernmental businesses who have appeared on market.First of all, this article does some analyzing and summarizing on the IPO background, the IPO process and different IPO models of private enterprises in our country. On this basis, the article firstly analyses and discuses some logical relationship just like the relationship between private enterprises'IPO models and character, the relationship between character and behavior, and the relationship between behavior and performance; and secondly the article outlines the path that describes different IPO models leads to different performance; And thirdly the article puts forward the view"different IPO models leads to different character, different character leads to different behavior, different behavior leads to different performance". And with this view, the article also tries to explain the relationship between the IPO models and performance which exists in the private enterprises in our country. And then, the article tests and verifies the view with the financial data of 468 private enterprises which have had their IPO between 2004 and 2006. At last, this article gives some typical cases, and has the focus on analyzing the impaction that different IPO models do on occupation of funds, security breaches, related transaction and corporate performance and so on.It is shown that controlling shareholders is more common and serious among PEs that went to public through merging or restructuring the listed state-owned companies than the case in the PEs listed independently. In addition, the controlling shareholders in PEs listed through merging or restructuring the listed state-owned companies have a higher degree of fund embezzlement, and thus they tend to pay fewer dividends. Furthermore, the empirical results show that the different performances of listed PEs are largely rooted in the modes of going public in that controlling shareholders'fund embezzlement leads to poor performances.Research shows that different models of IPO have different impacts on the performance of companies. To a large extent, it stems from that the controlling shareholders of backdoor listing companies over-occupy the funds of listed companies, and it also stem from the securities breaches and related party transactions caused by the listing model of backdoor listing companies. Statistical analysis and case studies supports the conclusion of this paper. The research view of this paper is so unique that it gives us many helpful evidences to learn the problems happened in the progress when private enterprises have their IPO under the graduate reform of market economy. The conclusion of this paper also have its practical significance.