Empirical Test And Aging Analysis Of IPO Effect In Small And Medium-sized Market

In May17,2004, the State Council and the Commission on China decided and approved，smalland medium sized board market was established in the Shenzhen Stock Exchange.In May27,2004, theShen zhen stock exchange held the first ceremony for small and medium-sized board,Zhejiang NHUCo,Ltd (002001)、Hongda Xingye Co, Ltd(002002) and other companies started to trade. Builting the smalland medium sized board market is a try to built Growth Enterprises Market and the multiple echelonscapital market,put it another way,the small and medium sized board market is Chinese characteristics ofstock market.From the establishment until now, small and medium-sized board has gone through10years,The operation of the market become mature.The number of listing Corporation was growwing,it hasbecome an integral part of China’s capital market.But through the observation of small and medium-sizedboard index, we find that, the small and medium-sized market is a very unstable state.Small andmedium-sized board index reach the highest point of7493.29points, and the lowest is1377.72points.StockIndex is an important index to the change of market operation,but the essence of the back is the listingCorporation’s management performance.The huge volatility index of small and medium-sized boardillustrate the listing Corporation’s performance is not stable,in order to research this problem authorparticularly introduced the “IPO effect”.IPO effect indicate that:Listing Corporation operating performance decline aftertheIPO,significantly lower than a year before the listing,and in the market after3~5years operatingperformance is generally achieve the average level of listed before.After Jain and Kini first proposed IPOeffect in1994,domestic and foreign scholars and investors concern about Listing Corporation’s realperformance level again.The scholars made an empirical analysis to the multiple global stock market andgot some innovative concl-usions,in this process, scholars achieved fruitful researchachievements.Through the research and veri-fication of the IPO effect, we can know the interpretation oflisting Corporation good operating perfor-mance before and after IPO.we can put forward some reasonablesuggestions for the development of small and medium-sized enterprises, and constantly improve our stockmarket and the capital market.The stock market is not only an important way of equity trading for company,and it’s an important way for shareholder investment.Small shareholders suffered heavy losses inthe stock market because performance of the company and institutional investor.At present,China stockmarket called “monkey market”.The author thinks that the description is very proper.The speculativeatmosphere too heavy and lack of stable value investment idea is a serious problem for Chinese stockmarket. The research of IPO effect is very necessary based on the above reasons.According to the2004～2007listed companies in the SME board and sample firms’s corefinancial data,author study the whole sample performance level based on the simulated company’sevaluation index. For a more quantitative analysis accurately,author apply fit test and single sample t-test toverify the changes of operating performance before and after IPO sample firms.According to the China’smacro environment and stock market environment,author state the problem of China’s small andmedium-sized market and put forward some countermeasures to Chinese stock market.