Research On The Effect Of The New Third Board Enterprise's IPO

In order to help SMEs develop healthily,the "New Third Board" market was formally established in 2006.Since then,the NEEQ has launched a series of policies and measures that have attracted a large number of high-quality small and medium-sized enterprises.The NEEQ market,at the beginning of development,has begun to expand.As the development of the NEEQ market becomes more mature,the corporate governance of listed companies is becoming more standardized,and financing problems have been alleviated.However,with the gradual expansion of the market scale,the market structure has begun to change,and market demand has gradually become more diverse.The problems of poor financing functions and insufficient liquidity of the New Third Board Market have become increasingly prominent.Therefore,some of the gradually growing companies have set their sights on the A stock market,hoping to meet the development needs of enterprises through listed on the stock market.Eastmoney Website show that a total of 415 new third board companies received counseling on the IPO from 2015 to 2018.By the end of 2018,a total of 54 companies had transferred from the New Third Board to the A stock market.Aiming at the phenomenon that companies on the New Third Board are seeking IPO,this research mainly focuses on the transfer motivation of these companies,and analyzes the transfer effects of the transfer companies.First of all,this paper counts the existing NEEQ listed companies.A total of 54 transfer companies were obtained,and 40 companies were selected as the research objects to study the motivations of the transfer companies.Based on the theory of financial growth cycle theory,signal theory and liquidity premium theory,the PEST analysis is used to explore the external environment of the company's transfer to the market.Based on this,the research on the motivation of the company's transfer to the market from the two aspects of the New Third Board market and the development status of the company is carried out.On the one hand,the study compares the differences between the NEEQ and the GEM in terms of market activity,liquidity,and market valuation,and then analyzes the external drivers of the company's transfer.Internal motivation.The above research shows that financing function,liquidity and anti-risk ability are the main factors for companies to choose to transfer to the market.Secondly,this paper studies the effect of the transfer board from four perspectives.First,this study analyzes the performance of transfer companies before and after the transfer from four aspects: financing efficiency,liquidity,risk resistance,and changes in shareholder wealth.The research results show that the financing efficiency of the company has improved after the transfer,the liquidity has been significantly improved,the ability to resist risks has been strengthened,and shareholder wealth has increased.Second,this article analyzes the financing efficiency of companies transferred to different sectors.The results show that the value of financing efficiency of the enterprises transferred to the GEM after the transfer has increased significantly.Thirdly,the difference between of the innovation level and the basic level enterprises is studied for the layering level of the transfer enterprises.The research results show that the transfer companies are mainly basic level companies,and the financing efficiency of the innovation level companies after the transfer is not significantly better than that of the basic level companies.Fourth,this study added 55 companies of the new thirdboard that did not transfer.As a control group,the horizontal comparison of financing efficiency between transfer companies and non-transfer companies was studied.The research results show that compared with the control group,the overall financing efficiency of transfer companies has improved but not significantly,the scale efficiency level of the two groups of companies is higher,and the pure technical efficiency of the control group is gradually increasing.Finally,through the analysis of the above-mentioned transfer motivation and transfer effect,the research found that: after the IPO of the company,the financing efficiency,liquidity,risk resistance and shareholder wealth have been improved to varying degrees;It can be seen from the analysis that the New Third Board plays a positive role in promoting the development of SMEs.At the same time,we found that the overall efficiency of Companies transferring to the GEM is better,probably due to the role of the New Third Board in promoting the development of listed companies and the fact that GEM has more relaxed listing conditions than other sectors.However,in the study of the causes and effects of the company's transfer board,we found that there are several problems with the transfer board.First,the transfer board mechanism is not sound,and the indirect transfer method is more complicated.Second,the layering system of the New Third Board is not complete,resulting in no significant difference in financing efficiency between the innovation and basic-tier companies.Third,the financing funds have not been fully utilized and reasonably allocated,and enterprises have experienced redundant investment.Fourth,the New Third Board has the problems of low market activity and insufficient liquidity due to higher thresholds for individual investors.Finally,on this basis,we put forward corresponding policy recommendations on NEEQ companies and the NEEQ market supervision.On the one hand,based on the efficiency change of listing companies in different sectors,companies need to clear financing needs and choose the appropriate sector for listing.In view of the fact that enterprises have a lot of redundancy,it is recommended that enterprises strengthen their management and make effective use of funds.On the other hand,through the analysis of the motivation and effects of the company's transfer,it is recommended that the New Third Board improve the transfer mechanism,strengthen financing functions,improve the layering system,improve market liquidity,and strengthen cooperation with regional equity markets,so as to better play its own role.Unique value for SMEs.