Research On China GEM Listed Company Performance Before And After IPO And Influencing Factors

In October23,2009, China’s GEM officially opened and so far has been more thanfour years time, the establishment of second board market to a certain extent solved thefinancing difficult problem of small and medium-sized enterprise. But in recent yearsfrom company’s annual report of the GEM listed, the overall performance of listedcompanies after is not very satisfactory, some enterprises will be even the phenomenonof loss. While the empirical study on the factors of change and its impact on performancefrom the past scholars on IPO before and after the operation is mainly in the main boardmarket, and the empirical research on the GEM in this area is relatively small. Based onthis, from the current situation in China’s GEM and GEM Listing Corporationcharacteristics and based on the past methods of scholars to study this problem, thearticle make the empirical research on change and its influence factors of the GME inChina listing Corporation’s IPO operating performance.This paper reflect the operating performance through the four aspects of profitability,operating capacity, solvency and ability to grow on the GEM of listing Corporation, andselected assets net profit margin, net interest rates, total asset turnover ratio, current ratio,asset liability ratio and sales revenue growth rate of six financial indicators. At the sametime the article used two tailed paired T test, factor analysis and regression analysis tomake the empirical study on the business analysis factors change and its influence onIPO performance before and after.Through the study we found: six financial indexes from four aspects of the SampleFirms, liquidity ratio increased significantly after IPO, indicating that IPO change thecapital structure of the listing Corporation, the increase of current assets; while the totalassets net profit margin, net interest rates, total debt ratio, turnover of total assets, salesrevenue growth of five financial indicators in the IPO decreased significantly, indicatingthe presence of significant decline in the IPO operating performance of China’s GEM oflisting Corporation. The degree of decline could be translated by equity, risk investmentbackground, IPO financing, industry factors in a certain extent：the decline in the level ofownership concentration negatively influences the slippage of the degree of decline：business performance risk investment reverse effect the slippage of the degree of decline; IPO financing scale positive effect the slippage of the degree of decline, and theinformation technology industry factors negatively influences the slippage of the degreeof decline. Finally, according to the results of empirical research on the development ofChina’s GEM market puts forward relevant policy suggestions.