Empirical Studies Of Chinas GEM IPO Performance And Its Influencing Factors

China’s GEM was formally established on October30,2009. Atpresent, the development of the GEM is relatively short; so many systemsstill need to improve. Relative to the main board market and the small andmedium-sized board market, the year and the number of listed stocks isless. Academies still mostly stay in the areas of qualitative theory ofGEM, although there is some empirical research, many papers are aboutthe effect of GEM IPO and IPO underpricing theory. The theory of theGEM IPO Performance is very rare, therefore, based on the analysis ofthe GEM market characteristics, this paper analyzes the IPO Performanceof China’s GEM and the factors that affect the GEM IPO performance.The author attempts to establish the multivariate regression model ofChina’s GEM IPO performance and do an empirical analysis. For thein-depth study of the GEM IPO performance, there are some theoreticaland practical significance. The author hopes to provide some referencefor some investors and listed companies.Firstly, the paper describes the background, purpose andsignificance of the study of this paper, and summarizes the currentsituation of domestic and foreign IPO performance, at the same time, anddescribes the content of the study and innovation; Secondly, the authoranalyzes the historical process and the characteristics of China’s GEM. Thirdly, the author researches China’s GEM listed companies and collectsthe data. The content is studied the sample that is listed281companies ofthe Shenzhen Stock Exchange from January1,2007to December31,2011. According to domestic and foreign research and the actual situationof China’s GEM, the author uses the method of the paired T-test to testthe performance of China’s GEM IPO. In addition, nine variables thataffect China’s GEM IPO performance are selected, and established alinear regression model to test the interaction between the influencingfactors and the GEM IPO performance.The empirical results indicate that there is the phenomenon ofdecline for the GEM IPO performance following the IPO year; GrowthRate on Net Assets, Inventory Turnover Ratio, Industry, OperatingIncome Growth Rate and Venture capital positively relate to Return OnEquity that is on behalf of the GEM IPO performance; Debt Asset Ratioand Return On Equity is a negative correlation. Finally, the authorpresents the findings and recommendations for this paper.