Small And Medium-sized Boards Of Listed Companies In Our Country Exists Ipo Effect Inspection And Analysis Of The Causes

IPO effect is the phenomenon that companies show significant valuedepreciation right after going public. This has been proved in stock markets ofother developed countries and our main board of A-share market. It is of greatimportance for the healthy development of our securities markets especially, theSmall and Medium Board and the maturity of investors to study the IPO effect.In Chapter One, this paper introduces us the background, the study purpose,the meaning, the whole idea and study methodology and innovation of this paper.In Chapter Two, it provides solid foundations for the IPO effect from thetheoretical perspective and empirical perspective.In Chapter Three, after eliminating the sample extrema, this paper conductsWilcoxon Test and Pared T-Test on the earning ability, operating ability, debtcapacity and growth ability, suggesting that only the companies’ earning andgrowth ability show the IPO effect significantly while the operating ability and debtcapacity not.In Chapter Four, it uses a regression model with explaining factors of fundingpercentage, level of initial PE over the industry average PE, reputation of theinvestment bank, share of the majority shareholder, venture capital and acontrolling factor of growth rate of GDP, getting conclusions that fundingpercentage and level of initial PE over the industry average PE have a negativeconnection with the ROE growth rate while the investment bank’s reputationand GDP growth rate have an positive one. In the final part, this paper givessuggestion on how to eliminate this IPO effect based on the conclusions above.