After IPO, corporate performance for the listed company can be measured in two ways:First, the stock market performance, the second is the company’s results of operations.Research on these two aspects deviate two hot issues: long-term weak performance of IPOand IPO effects. Scholars studied these two issues by doing research on different countriesstock market, but they get two different conclusions. Generally most of them admitted theexistence of a listed company IPO and IPO long-term effects of the phenomenon of weakperformance. With the development of the venture capital industry, more and more scholarsbegan to focus on the impact of venture capital on these two phenomena in China, as thedevelopment of the capital market in China is relatively backward and the relative relevantresearch is in a shortage. However, with the accelerating expansion of the domestic capitalmarket, especially with the launch of the GEM, based on the GEM-based venture capitalfirms platform, the researches on relation between the venture capital and stock marketperformance of listed companies and companies operating results are of great practicalsignificance. Not only may one find the different characteristics GEM in China market, butalso one is able to provide advice of great practical significance for the development andfinancing of SME venture capital industry.Based on theoretical studies abroad and domestic, the sample is selected from281stocksfrom October30,2009to2011on the GEM Market. The object of to study sample’s stockmarket performance and the company’s results of operations, in order to verify whether thereis a weak IPO performance and long-term effects in Chinese emerging capital market. Theresearch goes in this order. Firstly, the simple is divided into different group by usingpropensity score method (PSM), and then the empirical study is performed by using theaverage treatment effect (atts), in order to verify whether there is significant relationshipbetween the venture investment and the performance of listed company on GEM stock market.In conclusion, the result show that the phenomenon of IPO short-term strong performance,long-term phenomenon of weak performance and also IPO effect exists. It also shows the factthat after a certain period of IPO (180trading days), venture capital has a significantly positive impact on the stock market performance of listed companies, but no significantimpact on long-term (after240trading days). There is no significant effect of venture capitalon the operating results of listed companies. |