Analysis The Factors That Affecting The Growth Of Chinese Companies From The Perspective Of IPO

With the rapid growth of China economy, Chinese enterprises are growing fast continuously, and raising funds through IPOs has become a crucial point in the process of companies growing up. Financing can enhance the visibility of the companies, provides a stable financing channels and achieve the rapid expansion of the scale of the companies. Therefore IPOs has become the focus of many scholars, but their studies are focused on three high phenomenon research and there is little studies on how financing impact the enterprises’ growth. Therefore, this paper uses theoretical analysis and empirical analysis to confirm whether the financing behavior has impact on the enterprise growth, and to find out the factors affect the growth of enterprises.The research of this article study the theory of financing and enterprise growth and the relevant research about the effects of IPOs on the growth of enterprises. Found that the mainly research conclusion for this subject is that IPOs effect exists in the capital market, namely before and after IPOs, companies’ growth rate shows like V type. The financing time is the turning point. But Chinese existing studies on this phenomenon is old, so this paper takes companies which IPOs after 2006 as samples to verify the IPOs effect. Although scholars have found the IPOs effect but they didn’t study the factors that cause this phenomenon. Therefore this paper in-depth studies the factors that affecting the company’s growth. To improve the current research, and provide suggestions to the companies which are ready to go IPOs.This paper based on the perspective of IPOs and takes companies which IPOs after 2006 as samples to verify the IPOs effect exist in Chinese capital market. And based on this conclusion proposed 4 hypotheses. Takes the companies which went public in year 2011 as a sample, the samples are divided into GEM board and main board two groups to descriptive analysis and regression analysis to test the 4 hypothesis. Getting the Conclusions: for the companies on GEM, the issue price and the issued number ration are the main factors affects the company growth during the financing; for the companies on main board, ultra ratio and the issued number ration are the main factors affects the company growth during the financing. Based on the empirical analysis conclusion, this paper proposed suggestions to companies which ready to go public and recommendations for the capital market to improve IPOs issuance mechanism in order to promote the rapid growth of the companies. In the respect of perfecting the IPOs issuing mechanism, this paper presents the right of sell ideas into IPOs mechanism.And designed some specific aspects of this system, in order to restrict the stakeholders involved in and the Correlation which participate companies’ IPOs.Helping companies more rational in pricing making and control the scale of the financing during the IPOs.