Research On The Motivation And Performance Of New Third Board Enterprises To GEM

Since the reform and development of the capital market in 1990 s,China's capital market has developed into a multi-level structure,which is divided into on-site market and off-site market.Among them,the national small and medium-sized enterprises share transfer system(i.e.the new third board market)in the OTC market is an important part of China's multi-level capital market system.According to the statistics of the share transfer system of small and medium-sized enterprises in China,as of August 31,2018,11,663 enterprises were listed in the new third board market,which is much higher than the 3,204 enterprises listed on the Shanghai and Shenzhen Stock Exchanges.The scale of the new third board market is growing,but the level of development of enterprises listed in the new third board market is uneven.Enterprises with good performance can not achieve further development in the new third board market,and their financing ability and liquidity are flat.Therefore,high-quality listed companies have the need to switch to a higher level of capital market.If the company has the conditions to change the board,this shows that the company has maintained a good development situation in both business performance and governance.However,after the successful change of the board,whether the business and financial situation of the company can still maintain the original development momentum needs further evaluation.In view of the above problems,this paper will take Jiangsu Zhongqi Science and Technology Co.,Ltd.(hereinafter referred to as " FLAGCHEM ")as a case study.Firstly,the system and theory of China's switchboard are sorted out;secondly,the related concepts of the new three-board switchboard are defined,classified and sorted out,and the information asymmetry theory,enterprise life cycle theory and commission used in the process of the new three-board switchboard enterprises are also discussed.Secondly,according to the analysis of the motivation and current situation of the new third board enterprises,the paper analyses the motivation of the successful transfer of FLAGCHEM to GEM from the perspective of enterprise financing,enterprise value and company product structure,and then studies the effect of the transfer of FLAGCHEM to GEM by using the four traditional financial indicators,cash flow analysis and EVA performance analysis.The problems encountered in the process of turning plate are summarized.Finally,the author systematically summarizes and summarizes the operating performance and the reasons for the improvement of value creation level of FLAGCHEM after its conversion,hoping to provide a useful reference for the establishment of a multi-level capital market conversion system in China.