The Study Of Valuation And Acceptance Model Of The New Third Board Listed Enterprise

Small and medium enterprises(“SMEs”) has been a great driving force of China’s economic development, contributing over 60% of GDP and 50% of taxation. But due to a mixture of internal and external reasons, SMEs have always been faced with the difficulties of financing. In 2006, the new third board has finally been rolled out. But till now, the new third board has not been quite effective on solving problems-- it’s treated more as a incubator, and enterprises listed on new third board are ultimately aiming to get listed on other capital markets. The development and reform new third board are being quite slow, too. To promote the development of new third board and to improve its liquidity, this article focuses on the valuation of enterprises listed on new third board. After comparing such enterprises to those listed on main board, Growth Enterprises Market(“second board”), SEM board, NASDAQ, and Emerging Stock Market in Taiwan, a pricing model will be created for new third board listed enterprises. After research into various pricing methods adopted by other capital markets, and considering the inspirations got from NASDAQ and Emerging Stock Market, B-S real option model has been decided as the valuation model, and Fuzzy Math as the way to decide acceptable valuation interval of other decision makers.This article is consisted of the following parts. Part I, on the basis of introduction of topic and writing background, to tell about writing motivation, research method and thought train. Part II, elaboration on new third board’s current status and investment opportunities. Part III, comparison among new third board and other capital markets from home and abroad: on one hand, to show the specific characteristics of new third board through comparison with domestic capital markets, and on the other hand, to get some inspirations from the cultivation process of foreign capital markets. Part IV, to introduce applicability of various valuation approaches, and to determine the use of real option model, taking into account the characteristics and pricing method of new third board. Part V, to elaborate the valuation of new third board listed enterprises in details. Part VI, research results and prospect of new third board. This paper has two research results.the first one is a valuation model of the new third board, the second one is a accepting model. Both of them will be a valuable reference in the study of new third board in the future.