Research On The Issue Price Of High-market-Value Technological Enterprises On GEM

As of December 31,2016,the GEM has been listed for the seventh anniversary.The amazing speed of development has attracted the attention of the investment community and academia.The emergence of the GEM has promoted the development of China's multi-level capital market and provided a financing platform for the innovation and growth of technological companies.However,the efficiency of formulating the IPO price of the GEM has been questioned.Whether it can accurately reflect the value of the GEM technology enterprise is inconclusive.This article takes the high-market-value technological enterprise of the GEM as the research object.Starting from the influencing factors of the issue price,it constructs a multiple linear regression model of the stock price of technological companies.The independent variable index system consists of two aspects: the market indexes and the enterprise indexes.Enterprise indexes include profitability,growth and innovation capability.The regression results show that only the correlation between profitability and issue price is significant,which reveals that the issue price does not reflect the value of the technological enterprise;the market indexes include the reputation of the underwriter,the issue share number and investor sentiment,among which only the issue share number is significantly related to the issue price.In addition,compared with the regression results of closing price,which has a significant correlation with growth innovation capability.This means high market value has a certain degree of rationality.The tests of absolute efficiency standards and relative efficiency standards all prove that the issue price is unreasonable and so suggestions are made on common pricing models and pricing systems.It is hoped that through the efforts of enterprises,intermediaries,investors,and supervisors,the ability of growing and innovating,which represent the intrinsic value of technological companies will be fully reflected in the formulation of the issue price.Then the technological companies and GEM markets will well develop.