Research On The Performance Changes And Affecting Factors Of GEM Before And After Listing

Growth Enterprises Market board (also called Second-board Market in China), has been running for more than four years since formal operation in October2009. Especially after the convening of the18th CPC National Congress, in order to promote the healthy development of the high-tech small and medium enterprises, GEM becomes as important part as Main board in Chinese capital market. But the discussion of performance changes before and after listing, the questions of relevant financial data never stop along with the growth of GEM.This paper sorts out the research of declining performance in the Main board market and the Growth Enterprise Market board, the methods, and the selection of indicators by reading and classifying the relevant research results. Then the author summarizes the development of GEM board in China, analyzes the characteristic of the industry and compares with foreign markets, which explain the development of GEM board in China still need a long time to gradually perfect. Based on the theories, some effective policy suggestions should be put forward.The research takes the153companies which came into the market in2009-2010as research objects. The author collects the financial data in the six years before and after each company listed, which includes capital structure, solvency, profitability, growth ability and operation ability five dimensions and15indicators. Through the nonparametric samples test and factor analysis, the empirical study finds that the most companies’ indicator changes before and after listing, which indicates that the Chinese GEM board existed "the IPO effect" obviously, at the same time, concluding Total Assets Growth Rate, Stockholders’ Equity Turnover Ratio, Net Profit and the Growth Rate of Net Assets as the significant factors.In order to display the listed company operating status in Chinese GEM better, the author also makes case analysis for typical listed companies, finds that there has reasons to doubt that, the Silver River’s Stake made profit manipulation, polished performance and had other illegal behaviors in the IPO process, through " the IPO effect" significant profit index and assets indicators. It reveals some problems existing in the current GEM market, which badly in need to overhaul and management. At last, the author proposes policy recommendations from two angles, which including the market side and the enterprise internal management side.