The Study Of IPO Effect In The Listed Company Of China’s GEM

With the further opening of China’s economic and three decades of rapiddevelopment, China’s SMEs has quickly become an important force to supporteconomic growth and create employment opportunities. However, the channels ofSMEs are lack, and the financing way of that is single. SMEs just enjoy less than20%of bank loans resources, and vast majority of those are short-term funds, but it isdifficult for them to obtain a stable and long-term financial security, so it is difficult toexpand the reproduction and development of the project, and so on. How to provideSMEs with an open and fair financing platform to further promote the rapiddevelopment of SMEs and lead economic development and employment of nationalsin China, which must be resolved to thoroughly implement the “scientificdevelopment” and promote the sustainable development of China’s economic.In the report of the17th, President Hu Jintao made it clearly that our economicdevelopment can be truly promoted, only by actively optimizing the structure of thecapital market and a variety of channels to increase the proportion of direct financing,and propose to upgrade China GEM to an unprecedented level. Therefore, on the basisof the special institutional environment in China’s capital market, the scientificresearch in IPO effect of China GEM is an inevitable requirement to improve China’sGEM, as well as improve the operating capacity of domestic SMEs.This paper combines various factors of affecting the IPO effect in the listedcompany of China’s GEM, establishes a relatively perfect evaluation index system ofGEM IPO effect, and digs a series of problems that exist in the development ofChina’s GEM. In close connection with China’s securities market environment, thispaper designs optimization program by science, and promotes the improvement ofChina’s GEM and the continuous development of SMEs.This paper attempts to choose the listed companies of GEM in Shenzhen StockExchange in2009, starts from the current situation of Chinese companies listed on GEM IPO, fully learns the IPO effect theory at home and abroad, and adoptsempirical methods, such as the cross-sectional multiple regression analysis and pairedWilcoxon signed rank test, to do the empirical analysis and testing the existence of theIPO effect. Besides, it also analysis deeply the test results combined with a specialinstitutional background of China, improves the operating performance in the listedcompanies of China’s GEM on this basis, and suggests for improvement anddevelopment of China’s GEM. Based on the relevant theory, the topic of this article isprovided with a strong practice, connects closely with the actual situation of China’ssecurities market environment, does the research with practice, and hopes to drawrelevant policy implications for China’s GEM IPO to further improve the system forreference. This thesis explores innovative in the following areas:1. The innovation of research objects. This paper selects financial indicators infive years from2007to2011, and measures more comprehensively with the results ofoperations of SMEs from four abilities for reflecting the company’s operating results.It does the empirical research on the IPO effect in listed companies of China’s GEM,and fills the vacancies of the previous studies in the selection of the research objects.2. The innovation of the evaluation index system. By building the evaluationindex system of IPO effect of China’s GEM, this article analysis by synthesis thestatus of the operating results of listed companies from profitability, operationalcapacity, solvency and growing ability. Thus, it does an empirical study of the IPOeffect in listed companies of China’s GEM, and selects a sound in terms of studyindicators.3. The innovation of research methods. With the research of operatingperformance changes before and after the IPO of sample companies, this paper usesthe average related-sample Wilcoxon signed rank test. With the empirical research onthe IPO effect factors, it uses a cross-sectional multiple regression analysis and T-testanalysis.