IPO Impact On The Innovation Of China's Growth Enterprise Market Listed Companies

In the 2018 report of the two sessions,it was pointed out that “all-round innovation and entrepreneurship services should be provided” and “support for high-quality innovative enterprises to go public.” Since 2011,the Chinese economy has entered a period of natural decline from a period of rapid growth.The driving force of economic growth is changed from previous investment-driven,factor-driven to innovation-driven.When the late-comer advantage of a catch-up country basically disappears,it is necessary to achieve sustained economic growth through cutting-edge technological innovation.In the market economy environment,enterprises are the main carriers of technological innovation and application.Promoting innovative enterprises under the new normal is the key to promoting industrial upgrading and adjusting economic structure.This paper uses the enterprise-level data of China's GEM listed companies to analyze the impact of the stock market on corporate innovation through a unique initial public offering(IPO)perspective.The study found that IPO events will lead to an increase in the quantity and quality of innovation activities of GEM companies.The IPO has also expanded the scope of innovation outside the core business of GEM.In addition,the impact of IPOs on GEM innovations varies with financing constraints,corporate governance,and ownership structure.It is worth mentioning that private enterprises are faced with more tightening financing constraints.As their governance structure can better coordinate the interests of managers and shareholders,their innovation activities will increase significantly after the listing of GEM.The discovery of the positive impact of IPOs on loose financing constraints is the key to understanding why companies have increased the quantity and quality of innovations after the IPO of the Shenzhen Stock Exchange.What's more,this paper uses the inventor information in China's patent data to determine that IPO can not only help companies retain existing inventors,but also attract more inventors,which may be another important factor driving the enhancement of innovation activities.Finally,in the long run,it is found that the innovation activities brought by IPOs have increased and the company's Tobin Q ratio has been increased,which means that the company's development potential isenhanced.That is,through the listing on the GEM,the promotion of corporate innovation has had a real impact on Chinese companies.Through research,this paper draws several suggestions: For the financial market,it should focus on solving the financing problems of innovative enterprises,so that more SMEs and private enterprises with technological innovation capabilities can get listed financing opportunities.For the enterprise itself,it should focus on investing in its own innovation ability,and vigorously develop and innovate into all aspects of research and development,production,sales,etc.,to exert the best results,improve the sustainable competitiveness of enterprises,and contribute more to the development of the national economy.The securities regulatory authorities should,in light of China's specific situation,combine the background of the current financial regulatory transformation and the tools of regulatory innovation brought by the Internet to improve the regulatory measures for enterprises with innovative capabilities.From the five aspects of building enterprise innovation culture,improving organizational structure,creating talent team,perfecting evaluation mechanism and innovating commercial products,securities intermediaries can help companies with greater potential for technological innovation to operate in a standardized manner and obtain financial support for smooth listing.Investors need to rationally invest in GEM listed companies to contribute to the sustainable and healthy development of China's capital market and promote the effective transformation of“manufacturing economy” to “innovation economy”.