Analysis Of The IPO Effect And Influencing Factors Of China's Main Board And GEM Listed Companies

Since the reform and opening up,in the process of the gradual development and perfection of China's capital market.The initial public offering(IPO)has become an important means for many enterprises,when they have difficult in financing.IPO can help companies solve the financing problems effectively before IPO.It also provides new impetus for the development of enterprises after IPO.But from the existing research,we can find that,whether in the mature capital market of the western developed countries,or in some immature capital markets.There is a obvious decline in the business performance compared with the performance before IPO.China's capital market is mainly composed of main board,small and medium-sized board,gem,new three boards and regional equity trading market.It is a multi-level market system.The main board market mainly provide financing services for large blue chip and industry leading enterprises.The basic standard of the system and the standard of listed threshold are relatively high.This may make the enterprises adopt some earnings management measures in order to meet the standard of listing,which leads to the declined possibility of the business performance decline after the operation of the market.The market of the gem is mainly for the development of science and technology and the independent innovation enterprise.The requirements of the market in accessing conditions,corporate governance and the information disclosure system are lower than the main board market.This can help the technology companies with better prospects to get financing,and provide enough financial support for the development and growth of the listed companies.The performance of listed companies after IPO is closely related not only to their own future development prospects,but also to the normal operation of the entire capital market.Therefore,study the IPO effect,on the one hand,it can help to analyze whether IPO really contributes to the long-term development of the enterprise.It also can reduce the phenomenon that the enterprises ignore their own needs to IPO.On the other hand,we can further analyze the causes of the IPO effect in the capital market of our country,and provide the theoretical basis for the development and improvement of the IPO system in China.In this paper,we use theoretical analysis and empirical analysis,comparative analysis and comprehensive induction of the research method,taking the operating performance of the listed companies of IPO in China's motherboard and gem in 2014 as the sample data.Through the comparative study of the performance of the business performance before and after the IPO,check whether the enterprises listed on the main board and the gem in our country have the IPO effect.On the basis of previous studies,some factors that may lead to changes in the performance level of IPO before and after listing are put forward.Compared with the first two years after IPO and the first two years before IPO,the change values of ROA and EBIT/A of the listed company are interpreted as variables,Some factors which may lead to the changes in the operating performance of the listed companies before and after IPO are interpreted as an explanatory variable.The multiple regression model is constructed to examine whether there is a certain relationship between the variations of the selected explanatory variables and the changes in the performance of the Chinese main board and the GEM listed company.The empirical study shows that the operating performance of the main board and the GEM listed companies selected by the sample has decreased before IPO,and there is a IPO effect to some extent.In addition,through the empirical test,this paper finds that the explanatory variables of the first large shareholders' shareholding ratio and the asset turnover rate have a certain relationship with the changes of the operating performance before and after the IPO of the listed company,and put forward some suggestion to strengthen the supervision of the listed companies,perfect the IPO system and improve the self governance ability of the listed companies.