Empirical Research And Case Study On The Falls In Company Performance In IPO In The ChiNext Market

ChiNext opened in Oct.2009, which is positioned to complement the current Chinese security markets, and to provide funding channels to those small-to-medium enterprises with high growth potential and high-tech capability. However, since the establishment of ChiNext, some listed companies have suffered from big falls in performance, which is contrasted with their excellent financial performance before listing. This kind of fall in company performance has caused big loss to a lot of investors. The thesis conducts empirical research on the falls in company performance in the ChiNext, and uses descriptive statistical methods and regression method to discuss this phenomenon and those factors which have influence on the phenomenon. The thesis also conducts a case study on the specific listed company in the ChiNext. Finally, the thesis gives some suggestions in controlling such phenomenon.The thesis concludes that the falls in company performance do exist among those listed between 2009 to 2011, even after industry performance is taken into consideration. Moreover, factors such as industry performance, IPO P/E ratio, whether chairmen of the board and CEO is the same, and whether chairmen of the board and CEO are changed, all have influence on the falls in company performance. The case study on "Wang Su Technology" finds out that the management of the company has experienced big change during the first two years after listing. The company performance falls a lot in the first two years compared with that before its listing. Finally, the thesis gives some suggestions from the perspective of internal and external corporate governance, and regulation in the ChiNext market in order to control the phenomenon.