Empirical Analysis On The Listing Performance Of Chinese Listed Enterprises In New OTC Market

Small and medium-sized enterprises is always an important factor restricting the economic development of our country and is a bottleneck restricting the development of small and medium-sized enterprises financing problems.With the deepening reform and structure adjustment of economic system,solving the problem of financing of small and medium-sized enterprises has become a top priority.Considering the important position of the small and medium-sized enterprises in the economic development of our country,to solve the problem of small and medium-sized enterprise financing problems,in 2016,our country launched the share transfer market for small and medium enterprises,namely the New OTC(Over the Counter)Market.The New OTC Market,the main board,the small and medium-sized board and the gem jointly build the multi-level capital market of our country.In 2012,the securities and futures commission officially announced that the New OTC Market will be gradually expanded to the whole country,since 2013,the New OTC Market will be extended to the whole country.The number of the New OTC Market listed companies and the market value of the New OTC Market listed companies have increased dramatically.However,there are still a lot of differences between the New OTC Market and the main board,the small and medium-sized enterprise board or the gem board,with such aspects as financing scale,financing methods and listing requirements.Currently,more and more small and medium-sized enterprises have received financing from the New OTC Market.However,whether the firm performance of the New OTC Market listed company becomes better after receiving the financing,there are not too much research on this topic.We hope that through comparing the firm performance between before and after the financing,we can get a further understand of the New OTC Market for small and medium enterprises.This is also the purpose of this article.Based on the development of the multi-level capital market in our country,combed with the corporate finance theory,enterprise performance evaluation theory and the domestic and foreign scholars for listed companies financing performance before and after the change of research results,we selected all companies which has received financing once or more than once by the way of Private Placement in 2015.After sample selection,a total of 924 enterprises conform to the standard.In this paper,from the respects of growth ability,profit ability,operation ability and solvency of the listed companies,we selected the ten related financial indicators,using the Principal Component Analysis(PCA),to extract out five principal component factors and to build the final function of reflecting the performance of the enterprise performance.The final empirical analysis results show that:(1)There is a big difference between the New OTC Market listed companies.Take the firm performance after financing as example,the maximum is 483441.49 and the minimum is 616051.34.The average firm performance is 172.39.443 listed companies have higher firm performance,accounted for 47.94%,showing that the quality of New OTC Market listed companies varies.(2)More than half of the New OTC Market listed sample’s firm performance declined after financing.In 924 New OTC Market listed companies,only 419 companies financing performance difference turned positive,accounted for 45.35%.The rest of the 505 companies financing performance difference is negative,accounted for 54.65%.According to the results of the analysis,we discussed the main obstacle of the New OTC Market enterprise financing from the aspects of the market maker system,financing channels and rotating plate mechanism.Finally,for the proposed obstacles,we put forward some policy suggestions as follows: further perfecting the system of market makers,enriching financing channels and smoothing plate mechanism,etc.This paper uses principal component analysis to evaluate firm performance of the New OTC Market listed companies.It is objective to reflect the financing situation of the New OTC Market,which is for reference.