Can Enterprises Improve Operating Performance After Listing In NEEQ?

Along with the reform of our country's economic system,the structure of the capital market has been constantly adjusting and optimizing,the NEEQ has become an important part of the multi-level capital market together with the Main Board,SME Board and GEM.Although the NEEQ market started relatively late compared with the other boards,the number of listed companies has grown rapidly in recent years with the listing area expanding to the whole country and the improvement of relevant regulations and policies.As a result,more and more scholars and related people are starting to pay attention to the operation status of the listed companies.Some studies found that companies' performance declined more or less after listing on the Mainboard,SME board and GEM.The phenomenon is called the "IPO" effect.Now,there are also some literature studying the existence of the IPO effect in the NEEQ market and the influencing factors of the performance declining.However,the studied samples are mostly national and if we can take a research of the regional listed companies combining the characteristics of the local economy,the result may be more targeted.Therefore,It may have certain reference meaning for enterprises and investors in the province to study the operating performance' change of the companies in Shandong province after listing in the NEEQ market.This paper reviews the research on changes in operation performance before and after the listing of the Main Board,SME Board,GEM and NEEQ,and on this basis,selects companies in Shandong Province that listed in NEEQ in 2014 and 2015 as samples.Firstly,this paper analyzes the performance changes in the sample companies' operations,profitability,debt repayment and growth capacity before and after listing using the T-test and then uses factor analysis to summarize its overall performance and tests its changes.Secondly,it studies the listed companies' industries,transfer methods,and layer factors' impact on the performance changes of companies using regression analysis and controlling relevant factors that may affect performance changes.The research shows that after listing on the NEEQ in Shandong Province,in addition to the improving long-term solvency indicator,companies' other financial dimension indicators and comprehensive performance indicators have dropped significantly in the year of listing or one year after listing.The influence of industry factors on the changes of various financial dimension indicators before and after the listing varies among which the influence of scientific research and technology service industry,wholesale and retail trade,information transmission,software and information technology service industries,and agriculture,forestry,animal husbandry,and fishery seems more significant.At the same time,companies that adopt a contractual transfer method perform better overall after listing than those who adopt a market transfer method.Firms at the innovation level have better performance in terms of profitability and operating capability than companies at the basic level,but they perform relatively poor in terms of growth and solvency indicators.