A Study On China Gem Listed Company Performance Before And After IPO And Influencing Factors

The changes of operating performance before and after IPO, and the reasonsbecome one of the hot issues in the field of accounting, economics in the1990s andthe scholars have also achieved a number of research results. The studies about IPOperformance changing among the Main-Board Market and small and medium-sizedenterprises market are that the performance of the listed company does not improvebut significantly decline, that is obviously the IPO (Initial Public offering, initialpublic issue) effect.About the problem that whether the existence of the IPO effect appears inChina’s GEM or not, this paper attempts to combine the history of the development ofChina’s securities market and the current economic environment, select arepresentative of the financial indicators, and establish the consolidated financialindicators system model on the sample data for testing by using empirical analysis.The testing outcome shows that: the four indicators of profitability，operationalcapacity, solvency ability and grow ability about the sample declined after initialPublic offering of companies, and passed the test of significance, which means thatChina GME generally exits IPO effect.On the basis of deep analysis, this paper gets the conclusion: the two factors ofVC background and the share of the largest shareholder stake can explain the reasonsabout the declining of listed company’s performance to some extent. Lastly, this paperputs some relevant policy suggestions based on the following six aspects: the marketsupervision, information disclosure, venture capital, corporate governance, the use ofraising funds and the contact with Hong Kong GEM.