Research On The Performance Of IPO In Gem Of China And Its Influencing Factors

GEM is designed to provide direct financing for SMEs who do not have the conditions listed on the main board, the establishment of the GEM plays an important role in the construction of multi-level capital market in China.The research of IPO’s performance is one of hot issues in IPO fields, IPO performance is the market performance of 3-5 years from the date of IPO, it is called strong and weak. Most of the researches in the west show that there are serious performance weak in their capital markets.GEM, on the one hand, provided a lot of money support for small and medium-sized enterprises in our country and played an important supporting role for the economic of China; on the other hand, due to the short time of the establishment of the GEM, the domestic scholars have less research on the performance of IPO in the GEM. Does the performance weak also exist in our GEM IPO market, and what are the factors influencing the performance? It is the problem to be solved in this paper.In this paper we firstly combed the domestic and foreign scholars’ research literatures on the problem, and summarized the present situation of the researches on this problem.Then,we combed the related theories of IPO audit system, pricing mechanism, pricing model, pricing methods in China,and thus, the concept of IPO performance, measures and explanations for the weakness. On this basis, we use the method of normative research and empirical research, and choose the new shares listed on the GEM from 31 May 2010 to 31 December 2012 for as the sample to research the three-year performance of the new shares,therefore, the research time of this paper is up to December 31, 2015. From the characteristics of listed companies, distribution features, the secondary market three aspects, we choose 12 relevant variables to study the performance of 3 years after the listing of new shares by descriptive statistics analysis and eviews multiple regression analysis.Through analysis we draw the following two main conclusions:(1) there is serious three-year weakness phenomenon in GEM aboard.(2) the main factors affecting the performance of the Gem IPO shares are ROE(3 years before the company listed),ROE(listed year and after two years), listing interval, first day turnover. Among them, the impacts of ROE(3 years before the company listed), first day turnover are negative, the impacts of ROE(listed year and after two years) and first day turnover are positive. In the end, on the basis of the conclusions of the study, we put forward the corresponding policy recomendations:(1) Perfect the rules and regulations of capital market, promote the implementation of registration system.(2) Strengthen the investor education, cultivate the rational investors.(3) Improve the information disclosure system to ensure the quality of listed companies.(4) Regulate financial intermediaries, reduce the information asymmetry.(5) Strengthen supervision, purify the IPO market environment.