IPO Control And Post-IPO Performance

In China,Initial Public Offering(IPO)is controlled by the government.The government could decide the time,quantities and firms of IPO.However,these company will probably have a negative return in a short period after they go public,or loss money in the following years after they are listed in the market.In this paper,I summarize the IPO regulations in 2006-2018 and analyzes the regulations from the aspect of government control.To test the effect of IPO control,I examine the relationship between IPO control intensity and post-IPO performance of firms.The results show that the stronger the IPO control,the worse the firms perform.The result suggests that IPO control have negative relationship with firms' long term performance.This result is consistent in Small-and-Medium-Size Market and Growth-Enterprise Market.Finally,the conclusion of this paper points out the importance of IPO control,and will have significant practical application in the develop of science and technology innovation market in the future.