The Difference Of IPO Financing Cost Of Chinese Enterprises

In our country, optimal sequence financing theory does not apply, IPO financing is the first choice of the financing channels. In addition, the growth enterprise market set up as early as October 2009, and become more and more mature after years of development. Therefore, the small businesses would prefer to be listed on the growth enterprise market to get the funds required for the operation.The financing costs of the small businesses is higher in the various financing channels, IPO financing is no exception. Therefore, despite the growth enterprise market is one of the main channel of financing for the small businesses, but compared to the big enterprise, the unit cost of financing is still on the high side. It is undoubtedly worse for the small businesses which is in urgent need of development funds. So, how to reduce the cost of the IPO financing for the small businesses has become a pressing problem.There are many factors that can influence on IPO financing costs, and there are lots of method to reduce the cost, but which method is worthy of attention and feasible is worth studying.The high cost of IPO financing for the small businesses is higher than the big businesses. So, Comparing the influence factors of IPO financing costs of the small businesses with the influence factors of IPO financing costs of the big businesses, and doing the difference analysis, we can find the high part of IPO financing costs of the small businesses. This method can also greatly narrow the scope of attention. On this basis, the influence factors after for feasibility analysis, can obtain more practical and feasible solution.The first step of the empirical research of this paper is the two independent samples non-parametric test, which find that only direct costs of IPO financing is significantly different between the companies in main board market and the companies in growth enterprise market. Secondly, using the selected explanatory variables and the direct costs of IPO financing for regression analysis, and compared the data of the companies in main board market and the data of the companies in growth enterprise market. Through this way, we can find that network offering success rate is a significant difference of influencing factors. Thirdly, through the principal component extraction, and do the regression analysis again, we can understand from a more macro factor level that the total assets, net assets and the stock issuance will have a significant influence to the direct costs of IPO financing, and the small businesses affected the influence is opposite with the big businesses. It means that there is a positive correlation between the scale and the direct costs of IPO financing of the small businesses, and there is a negative correlation between the scale and the direct costs of IPO financing of the big businesses. Finally, we get the point of reducing the high cost of IPO financing of the small businesses. We suggest the small businesses to list as soon as possible, and through their ways to attract more investors to play their new shares to reduce network offering success rate, and in order to reduce the IPO financing cost.