The Research On The IPO Effect Of Companies Listed On GME Based On Finance

GEM(Growth Enterprise Market)has been widespread concerned since its launch in2009as afinancing platform launched for small businesses only. At present, domestic scholars havemade its studies focus on the comparison of performance before and after IPO boutChinese’s lised companies in Mainboard Market and Small and Medium-sized Board Market.Recently, Chinese scholars have still focused on other filed about the GEM, very few scholarsstudied about the comparison of performance before and after IPO of the GEM because oflack of data. GEM has entered in its fourth year, the data on the comparison of performancebefore and after IPO about GME has became matured, therefore, the author will research onthe comparison of performance before and after IPO about companies listed on GEM.At present, foreign scholars studied on the IPO effect have mainly focused on three researchangles, the first angle is the IPO underpricing, this research perspective is always the hot spotof Finance; the second angle is the IPO stock selling, the third one is the comparison ofperformance before and after IPO. For the third one, the domestic scholars`mainly focus onthe study of Mainboard Market and Small and Medium-sized Board Market. In this article,the author defines the comparison of performance before and after IPO as the“IPO effect”.The author will test its existence on the GME and the main factors that affect the businessperformance of the listed companies. In the end, the author will give her advises on how toavoid the IPO effect happened in the companies listed on GME.