The Empirical Analysis And Enlightenment Of IPO Effect In America NASDAQ Market

USA NASDAQ market was founded in1971, since its inception has Microsoft, Google, apple,IBM and other well-known high-tech companies.Its success has greatly pushed forward the development ofscience and technology America, at the same time, it also made a great contribution to the economicdevelopment of USA.As the world’s second largest stock market, its success to financing for small andmedium-sized high-tech enterprises provide a good platform to support the development of small andmedium-sized enterprises, become the global model.Many scholars have studied the success of NASDAQmarket, they all own the success to NASDAQ’s perfect market system.But I believe that the success ofNASDAQ market, not only the success of the system,but the the excellence company.So the NASDSAQmarket listing Corporation performance were studied, compared to the company performance in the marketbefore and after the performance, observed with or without the so-called IPO effect.The "IPO effect" was first proposed by the British scholar Jain and Kini in1994, a listingCorporation in IPO after3to5years operating performance decline phenomenon. After the "IPO effect"was put forward, the domestic and foreign scholars have conducted extensive research on it, generallyresults show there are IPO effect major global markets.Results the general domestic and foreign scholar’sresearch shows, there are IPO effect major global markets. But these studies all based on the medianmethods, this paper will use the sum of the overall market returns were compared before and after thelisting,trying to find the success of America Corporation listed on NASDAQ lies not only in the NASDAQmarket’s perfect system, but in its listed company reasonable use of the NASDAQ market platform,through the high risk period, to promote the rapid development of the company, and to create greater valueafter IPO.This paper attempts to choose the listed companies of NASDAQ market the GEM of Americafrom2004to2009as the research object,with the methods of data statistical analysis and single sample ttest,to analysis and test the post-issue operating performance contrast with pro-issue,as a result there is notan IPO effect.That is, the performance of America Mainland Company listed in NASDAQ market did notdecline in the3year after IPO,but increased.In order to check the reliability and the significant of the results of the empirical analysis, the author conducted a single sample t test of the samples. Test resultsshow that the full sample simulated company have a good simulation of the sample firms’sperformance,and financial indicators of the full sample of simulated company have significant differencebetween the year before listing and3years after the listing. Therefore, the performance of NASDAQAmerica Mainland Company did not decline,but have a significant increase phenomenon, contrary to thetraditional "IPO effect" theory.On the basis of which to find the root cause of the success of NASDAQ market,not only thanks tothe perfect system,more thanks to the healthy corporate governance system of creating profits forshareholders and enterprise culture of innovate.And based on this,put forward some advice to China thenew SanBan.