Research On The Decline Of Performance Of China's SME Board Enterprises After IPO

As we all know,the SME Boardmarket of the Shenzhen Stock Exchange provides a good financing channel for a large number of small and medium-sized enterprises,and the financing amount is large.The company conducts an initial public offering of shares in the SME Boardmarket,and the funds raised can be used for investment projects and supplementary business development needs.After the successful listing,it can also raise funds through other financing methods,such as private placement,bond issuance,and equity pledge.The benefits of an IPO to companies are not only this,there are other changes,optimizing their capital structure through listing,optimizing the company's visibility and brand premium ability,strengthening the company's ability to resist various risks,and attracting more high-precision Sharp human resources,etc.Improved all aspects of the enterprise,so the company should develop better,especially in terms of performance.However,the empirical research conducted many scholars at home and abroad(local and foreign scholars)on different capital markets of various countries has drawn conclusions that are completely contrary to expectations..The operating performance of small and medium-sized enterprises after the listing has not shown a significant improvement,but has fallen sharply,and even some companies are not as good as before the listing.This article takes 72 companies listed on the SME Boardof the Shenzhen Stock Exchange in 2014 and 2015 as examples to obtain their prospectus and annual financial statements,and analyzes the financial data of the sample companies in the three years before the listing,the year when they are listed and the four years after they are listed..Through the analysis of the analysis of the four financial indicators of profitability(net equity interest rate,operating net interest rate),operating capability(total asset turnover rate),and debt serviceability(equity multiplier)to verify whether they have post-listing operating performance The decline phenomenon includes Wilcoxon sign rank sum test of descriptive statistical analysis and non-parametric test of the sample data of all sample companies before and after IPO.After analysis,the profitability and operating capacity of the 72 sample companies listed on the SME Boardof the Shenzhen Stock Exchange have experienced a significant decline,but their solvency has not declined,but has increased to a certain extent.Next,this paper uses the factor analysis method of the DuPont analysis system to analyze the four financial indicators of the sample companies before and after listing for seven years.difference.Before listing,the factor that most affected the decline in net rate of return on common stockholders' equity was the total asset turnover rate,followed by the operating net interest rate,and the factor that had the least impact was the equity multiplier.In the short-term after listing,the most important factor affecting the decline in net rate of return on common stockholders' equity in the first year after listing is the equity multiplier,followed by the total asset turnover rate,and the least affected factor is the operating net interest rate.However,in the medium term after listing,the opposite is true.The factor that has the most effect on the decline in net equity is the operating net interest rate,followed by the total asset turnover rate,and the factor that has the least impact is the equity multiplier.Further,the article puts forward hypotheses by selecting the influencing factors of the decline in performance of listed small and medium-sized listed companies in China after IPO,and then constructs a regression equation,and uses SPSS software to perform multiple linear regression to analyze the influencing factors.It can be known that there is a negative correlation between the change in the net interest rate of listed companies' equity and the proportion of funds raised.The higher the proportion of funds raised,the greater the change in the net interest rate of the corporate equity before and after listing,that is,the more obvious the decline in performance after listing.The change in net interest rate of corporate equity is positively related to the change in net operating margin and total asset turnover.As the operating net interest rate and total asset turnover rate increase,the net rate of return on common stockholders' equity will increase accordingly,and the decline in performance after the IPO will be relatively small.The controlling shareholder's shareholding ratio,background of risk investment,listing year,and equity multiplier have no significant impact on the decline in performance of Chinese small and medium-sized listed companies after the IPO.Finally,through the conclusion of this article,three policy suggestions are proposed,namely,improving the quality of listed companies;strengthening the market supervision mechanism;and effectively controlling the scope of application of the funds raised by the IPO and its efficiency and total use.Only by working together from multiple aspects can we soon change the decline in performance of small and mediumsized enterprises in China after the IPO.