A Research On The IPO Effect Of The Listed Companies On Chinese Main Board

In our country, with the increase numbers of the companies to begin their initial public offering and become listed companies, and the switching off and restarting of IPO time and time again, the problem of the decline of performance, what is the problem of IPO effect gets more scholars’attention. The problem of the performance not only affect on the growth of stock and the investment directly, but also relate to the normal operation of the capital market, so it has been the majority of scholars’focus. The research of the IPO underperformance,on one hand it reflect the situation whether some matters is in our stock issuing system and others system or not, so it is beneficial to improve the legal system of review and issue shares, on the other hand,it contribute to help the companies which want to be IPO to have an analysis of what brings to their enterprise after IPO, and avoid to get IPO blindly. So it conducive to improve the availability factor of the capital at home and abroad, and choose the right time to IPO, to raise more fund and strengthen the enterprises in our country. While the listing Corporation on main board as main body of our listing corporation in China, and the barometer of national economy, the research on the IPO effect of listed companies on Chinese main board has its special realistic meaning, it’s not only good for our listed companies growing up in a healthy condition, but also good to maintain a good market environment for our main board, so as to protect the investors’rights. So based on the change of the performance which is before and after IPO, researching on the he IPO effect of listed companies on Chinese main board, has its profound theoretical and practical significance.The paper is based on the research on the IPO effect at home and abroad, and combing with the actual situation of listing companies on Chinese main board in recent years, we choose the 78 listed companies on main board as the research sample which is IPO in Shanghai Stock Exchange from 2010 to 2012, and try to test the phenomenon of IPO effect. According to the agency theory, information asymmetry theory, earnings management theory, the scale of financing theory, and putting forwarding the influencing factors which could have an effect on the extent of the decline of operating performance. We choose ROE as the dependent variable, and choose many factors which may have some influences as the independent variable, and choose the time which the companies as controlled variable, to generate linear regression model and have an examine of the relationship between the influence factors and the operating performance before and after IPO by the linear regression. The results of the empirical research shows that the listed companies on main board in China have the same IPO effect as the other listed companies on board, no matter on in the aspect of financial benefit, the assets operation or in terms of debt paying ability and development ability, comparing with the operating performance after IPO, the operating performance has some extent of decline. In addition, the equity ratio of the strong shareholder, the scale of placement and the investment background have an influence on the IPO effect. At the end of the paper, according to the empirical research, we give some advice on strengthening the supervision of listing companies, improving the efficiency of placement, perfecting the management or listed companies and advocating institutional investors’ venture capital.