Research On The Motivation And Effect Of Board Transfer Of NEEQ Enterprises

The NEEQ market began its pilot operation in China in 2006.Since the comprehensive expansion in 2013,the number of listed enterprises began to grow in a blowout.For small and medium-sized enterprises,the listing of the NEEQ can partially meet the financing needs of enterprises and solve the problem of liquidity shortage.However,in recent years,the turnover rate,transaction volume and transaction amount of the NEEQ have decreased significantly,which is increasingly unable to meet the financing needs of listed enterprises.Therefore,many excellent enterprises in the NEEQ will choose to transfer to higher-level plates.With the official unveiling and operation of the Sci-Tech innovation board on July 22,2019,a large number of enterprises listed on the NEEQ apply for transfer to the science and innovation board.This paper studies the effect of these NEEQ enterprises and whether the enterprise dilemma has been solved after the board transfer.Firstly,this paper introduces the current situation of the transfer of NEEQ enterprises,including China’s current transfer system,the difference between the NEEQ market and the floor market,and the current situation of NEEQ enterprises applying for transfer listing.Then,taking the four first batch of enterprises from the NEEQ to the science and innovation board as the case study object,this paper analyzes the motivation of the four enterprises from the external and internal perspectives.From the external point of view,the liquidity of the NEEQ is too low,and the enterprise stock is illiquid for a long time,which causes the enterprise stock price to remain unchanged for a long time,can not truly reflect the valuation level of the enterprise,and hinders the development of the enterprise.In terms of internal motivation,in order to continuously improve the core competitiveness and anti risk ability of enterprises,the demand for funds is increasing.Transferring to high-level plate listing is an effective means to solve the capital demand of enterprises.This paper further analyzes the effect of the enterprise board transfer.Through the comparative analysis of the market performance of the case enterprise after the board transfer and the financial and non-financial indicators before and after the board transfer,it is found that: first,the stock liquidity of the case enterprise is greatly enhanced and the enterprise valuation level is significantly improved after the board transfer.Second,after the board transfer,the scale of the case enterprise has been significantly expanded and the financial situation has been optimized.Third,after the board transfer,the innovation ability of case enterprises has been significantly improved.Finally,this paper puts forward some suggestions: the enterprises preparing to transfer the board in the NEEQ should improve their strength,improve their financial situation and improve the quality of enterprise information disclosure;Enterprises that have successfully transferred to the board should improve the use efficiency of raised funds,increase R & D and enhance the innovation ability of enterprises;The construction of multi-level capital market needs to improve the liquidity of the NEEQ market and accelerate the construction of the board transfer mechanism.