The Impact Of Non-Financial Indicators On The Listed Internet Companies In The IPO Valuation And Stock Return Rate

In the valuation,traditional companies often focus on the net profit,net assets or other financial indicators.Internet companies,having the characteristics of high growth,light assets and so forth,often bring huge investment returns in a relatively short period of time for investors.Under the situation of negative net profit and meaningless PE,the financial indexs are unable to adapt the characteristics of the Internet company.What we need are other appropriate indicators to assess the valuation of enterprises,to find the essence of valuation of Internet companies through the change of the business model and the fluctuation of stock price.Therefore,it is the purpose of the paper to explore which indicators have a significant impact on the IPO valuation of the Internet listed corporations and their stock return rate.In this paper,we use the OSI model as the basis of selection,screening 99 Internet service operators of the enterprise from the Internet listed corporation in the United States.The companies’ business models are divided into "E-business to Customer" and " E-business to Business ".Furthermore the two models are divided into four parts: the scale efficiency,business model,corporate governance,scientific research and technology level.Later,we selected several proxy variables to represent the four parts.In the aspect of empirical study,this thesis is divided into two parts to discuss: First,we use the multi-factor model,principal component analysis method and dummy variable settings to discussed the influence of non-financial indicators on the IPO valuation of Internet listed companies;Secondly,we use the BHAR model to test the influence of non-financial indicators to the stock return rate,through testing of mean difference discussed.By Category talk and empirical research,we found that non-financial indicators(economies of scale,diversification,corporate governance and level of scientific research)on Internet companies have varying degrees of influence on the IPO valuation and stock return rate of Internet listed companies: For B2 B Internet companies,the market wants "individualoriented Internet companies" to get more number of customers,diversification business,controlled by management and "the researchers proportion of the total number of employees" as low as possible;and for the "individual-oriented Internet companies" and "business-oriented Internet companies," it wants the number of patents as more as possible.For investors,if we can get more customers,diversification business,non-VIE holding structure or non-management help,the stronger ability for the "individual-oriented Internet companies" stock to resist risks;if researchers get greater proportion of the total numbers of employees and have more numbers of patents,the stronger ability for the company to resist risks.