IPO Effect Research Of Chinese Companies Listed On GEM

1、Background"IPO and listing on the gem in the Interim Measures for the management " has been positioned to promote independent innovation enterprises and other entrepreneurial business development growth, protect the lawful rights and interests of investors, the maintenance of social and public interests, the clear positioning of the conditions for listing on the GEM is to have the capability of independent innovation and growth, there are significant differences in this one with the motherboard, and also explains the characteristics of the GEM. Support the development of start-up companies to implement the strategy of independent innovation, is the historical mission of the GEM, GEM, nurture and promote the growth of the growth of small and medium companies, is an important platform to support the core strategy of the national independent innovation.China’s GEM market since the2009open board, after two years of development, the listed companies has exceeded300, the size of the market in the short term to achieve rapid expansion, but had been sent to the "high hopes" of the GEM, the high price-earnings ratio high issue price to promote the following laps to go a lot of money to create a number of nouveaux riches to the capital markets and investors left is a "break" over and over, good and bad listed companies, institutional innovation is almost stagnant "mess". As of January31,2012,285GEM companies all disclosed in the2011results notice, although about72.3%of the GEM2011results pre-hi, but the overall performance of a significant decline in growth than in previous years, at the same time, high proportion of growth companies decline, the decline in performance enterprise proportion has increased, in the context of performance is expected to fall, the GEM continuation of the downward trend is increasing the possibility.2、research and perspectives The object of this paper for our GEM IPO effect at home and abroad for the study of the IPO effect study of influencing factors of two parts-the effect of different IPO market of the existence of research and IPO effect, this study is based on previous research results.First of all, of the GEM Listing the existence of the company’s IPO effect. At home and abroad has basically come to the conclusion of different markets, there are varying degrees of IPO effect. By contrast the advantages and disadvantages of commonly used business performance evaluation method, combined with the companies listed on GEM listing requirements, determine the company’s growth_nd profitability, financial indicators to measure the company’s operating results. By year after the two years before the IPO, the IPO on the main business revenue growth and return on net assets within a period of four descriptive statistics and test of significance, proved the existence of the GEM IPO effect. But we find that the decline in operating performance of China’s Growth Enterprise Market listed companies do not only exist after the IPO, a downward trend but have existed before the IPO, only relative performance in absolute terms is still relatively good.Secondly, the effect of Chinese companies listed on GEM IPO factors. Home and abroad for IPO effect factors of the different emphases come to different conclusions, the main explanation of views based on the agency costs to explain the agency relationship, based on the company to choose to choose the listing hypothesis, based on the corporate governance point of view control human nature and ownership influence. Combine the characteristics of the GEM, through analysis of specification logic, ruled out the above theoretical interpretation of the effect of the GEM IPO that earnings management-is the main cause of IPO effects, the paper also raised the earnings surprise of this new the concept that in a certain period of time by relatively radical operation to achieve the purpose to enhance the performance, scale. Through empirical analysis, design regression model of earnings management and performance of a surprise given validation. In the empirical analysis, the article also joined the company size, operating efficiency, the nature of the industry as control variables, the size of the company operating results before and after the Chinese companies listed on GEM IPO impact, operational efficiency and the nature of the industry did not affect significantly.The following are the details of arrangements for this article: 3、the significanceTopics on a combination of the popular discussion of the current social research. GEM listed companies in China after the IPO, although the results are mostly to keep growing but the growth rate has decreased significantly, and part of the performance of listed companies also declined. Performance drop phenomenon also continue to report and reflect on the many mainstream media and the community characterized by high growth of the GEM, and as regulators of the SFC, Goo took office, China’s stock market, especially entrepreneurial board has launched a series of reform measures and the direction of reform implied. Thus, GEM listed company IPO and its influencing factors are the reality of practical and instructive.On the study, the short time due to the establishment of the Growth Enterprise Market in China, the research has been small, and its own, there are many significant differences with the motherboard market characteristics, draw on existing research on the basis of the combination of GEM particularity, this article in theory, but also a breakthrough. This study did find that of the GEM Listing Company IPO effect there is a new performance and its influencing factors to a certain extent different from the existing research, these conclusions will be elaborated in the following contribution.4、the main contributionFirst found that the effect of GEM IPO with new features. During the GEM in China since the open board, the companies listed on GEM IPO operating performance decline is not a new topic, the endless stream of performance Changing Faces company has been a spate of public opinion questioned, but carefully read the reports, we found that, comparing performance is actually very narrow, mostly to the previous year after the IPO performance and IPO, and IPO audit at least three years of the reporting period, if the pre-IPO performance changes include a long-term comparison, then the operating results change occurred only after the IPO? Found by descriptive statistics, in fact, China’s GEM listed companies before the IPO has been the downward trend in operating results; maintain a high level just before the IPO is still in the absolute amount.Second, the particularity of our GEM listed companies, excluding commissioned agent, choose the listing, the actual control of human nature and percentage of ownership and other factors on the interpretation of the IPO effect is proposed and validated earnings management that affect China’s GEM IPO effect of the main factors. Principal-agent premise that the separation of ownership and management, but Chinese companies listed on GEM is essentially private enterprise, there is no agency relationship; of IPO system implementation of the sponsor system, but whether the market is still mainly depends on the administrative examination and approval, unlike the registration system, so the company cannot control the timing of listing; GEM listed companies actually control human nature more than a natural person, there is no state-owned and non-state nature of difference, even if the company is listed, actual control of the stake is still higher, and the behavior of the transfer of funds relative size of the larger companies there is a certain degree of difficulty.Third, the paper also proposed a new concept-"performance assault, within a certain time by the relatively radical operation to achieve the purpose to enhance the performance, scale. GEM listed companies in China due to the generally smaller scale, short-term by way of debt management can quickly expand the scale to achieve a higher growth performance, but also a quality of the IPO audit process, financial considerations, in addition to special industries, the debt ratio are not too high, so the closer the IPO point in time, will lower the company’s debt ratio, the smaller the degree of radical business, making the results of operations saw a decline; and reduce the power of the performance of the company after IPO assault, and the company is listed by supervision of the parties, the need of a stable shall be subject to strategic and environmental performance assault no longer fit the company’s development.