An Empirical Study On Ipo Companies In The Process Of Performance Finishes

There is an intersting phenomen about the decline performance of China A-share listed firms after IPO. Many scholars are trying to explain it from performance color, earnings management, equity structure and political contact. In previous research, they only use the financial statements data to find the difference of performance index between pre-IPO and post-IPO. There are defects in there study method, such as they can not eliminate the influence of economic cycle or industry recession. In addition, under special institution situations, such as China's gradual reform, the resource competition among local governments, the arrangement of stock issuing regulation and the strict regulation, so the listed firms in our country are restructed through different restructing modes and thus lead to the different pre-IPO endowments, which can affects the performance color of pre-IPO firms.This study tries to find the difference of ROE and ROA of three-year before IPO firms by using the listed firms'statements data and the industrial statistical data, thus we can test the authenticity of last three annual financial statements before IPO. The empirical results show that: first, China listed firms indeed exist the phenomenon of the decline performance after IPO and ROE and ROA are the highest at one year of pre-IPO, and the performance drastically declined after IPO year by year. Second, there are no evidences about performance color in complete restructuring listed forms. In incomplete restructuring listed firms, we only find the obvious difference of ROE between the two kind of data. Third, we also find out that the extent of decline performance in incomplete restructuring firms is higher than in complete restructuring firm.To summarize, this study find out there is a performance color in listed firms that went through incomplete restructuring. The conclusions in this study have practical significance in regulating the government behaviours and the restructuring modes that the firm can choose.