Study On The Influence Of Asset Evaluation On IPO Effect

IPO(Initial Public Offerings)refers to a company issues shares in the public market to raise funds from the public market in the first time.Theoretically speaking,after the company goes public,it will raise more funds,expand production,and its business performance will be significantly improved.However,many domestic and foreign scholars have found that after listing,the company's business performance will decline,and it is very difficult to return to the pre-market level within several years after listing.The operating performance curve presents a hook shape.We call the IPO effect the phenomenon that the company's operating results decline after listing.In this paper,A share listed companies from 2011 to 2016 are selected as the research samples.Through T test,we find that there is IPO effect in the A-share market of our country.We use Pearson correlation coefficient to test the correlation between variables.This paper explores the relationship between asset evaluation and IPO effect.First of all,it is found that there is a significant correlation between the IPO effect and the asset evaluation of listed companies in the A-share market.That is,the IPO effect is small which company conduct asset evaluation.Among the enterprises that carry out asset evaluation,the enterprises that choose the top ranking and the reputable appraisal institutions have small IPO effect.Secondly,the relationship between whether or not to evaluate assets and the size of IPO effect is different for different nature enterprises.That is,there is no significant correlation between whether or not to evaluate assets in state-owned enterprises and the magnitude of IPO effect.Whether or not to evaluate assets in non-state-owned enterprises is significantly related to the IPO effect.The IPO effect of non-state-owned enterprises with asset evaluation is small,and that of non-state-owned enterprises with higher reputation is smaller.Finally,in the areas with different marketization degree,the relationship between whether to evaluate assets and the size of IPO effect is also different.That is,in areas with high degree of marketization,there is no significant correlation between the size of IPO effect and the enterprises carrying out asset evaluation.In areas with low marketization,the IPO effect of the enterprise that carries on the asset appraisal is small.At the end of this paper,the conclusion of the article is summarized.Some suggestions are put forward to,such as to perfect the laws and regulations,strengthen the law enforcement,perfect the establishment of the asset appraisal institution and the reputation system of the appraisal professionals,and strengthen the internal supervision of the company to reduce agency costs.