Analysis Of Advantages And Disadvantages Of Small And Medium-sized Enterprises List In The New OTC Market

The financing difficulty of small and medium enterprises in China is a difficult problem that hinders the development of enterprises.In view of this,China has established a national small and medium enterprise share transfer system through the reform of the new OTC market in 2013.It is committed to solving the problem of financing and equity circulation of small and medium-sized enterprises,and the system is also called the new OTC market.First of all,this paper describes the development process and present situation of the new OTC market,analyzes the causes of the present situation,finds out the shortcomings of the new three board in the trading system,and finds that the listed companies have better business performance through comparing the financial datas of the listed companies and the small and medium sized enterprises above the scale.Secondly,it analyzes the benefits and disadvantages that the listing can bring to the enterprise in theory,and the benefits are mainly reflected in the improvement of the corporate governance structure,the convenience of the company financing,the improvement of the liquidity of the stock and the promotion of the brand value of the enterprise.The disadvantages are mainly reflected in the increase of the cost and the "three types of shareholders" problem when they are listed.The fourth chapter takes the example of Ke Shun Fang Shui inc as an example to analyze the impact of listing on the Shun Fang Shui inc.As a result of the listing,the company's board of directors system,the supervisory board system and the senior managers have been established,and the ownership structure has been changed.At the same time,the scale of financing and the liquidity of the stock have also been improved.The listing also has some negative effects on the company.In the process of stock circulation,the problem of "three types of shareholders" and the number of more than 200 shareholders has had a negative impact on the listing of enterprises,but all these problems have been solved perfectly,and Ke Shun Fang Shui inc is successfully listed,so the income obtained by the company's listing is far better than the adverse effects on him.The conclusion of this paper is that the enterprises with large scale and good performance can improve the internal management of the enterprises,improve the liquidity of the equity,and obtain a large scale of financing,which are more than the cost of the listing.Therefore,the listing of these enterprises is more advantageous than the disadvantages.Companies with small scale and poor performance are hard to get financing on the new OTC market,there are few equity transactions.Listing will only increase the cost of enterprises.The listing of such enterprises will do more harm than good.