Study On The Abnormality Of IPO Caused By The AbnormalTransaction Of Companies Applying For Listing

From a macro perspective,there are many cases in which the listed companies in China's A-share market are rejected at the time of IPO filing,and cases in which they are rejected due to the existence of connected transactions are also common.According to the public disclosure information of the China Securities Regulatory Commission,a total of 59 IPOs of listed companies were rejected by the issuance review committee in 2018,including a total of 46 related party transactions.Microscopically,'on March 6,2017,Shenzhen Megmeet Electric Co.,Ltd.(002851.SZ)successfully listed on the small and medium board of Shenzhen Stock Exchange.However,its IPO road is not smooth,from the first submission of the application materials.Successful listing,which lasted for 5 years,and the biggest obstacle affecting its meeting was the related transaction problem with the "TCL Department".After a series of corrective measures,Megmeet finally dreamed of the A-share market.The case of Megmeet is a typical case of IPO being invalid due to the existence of related party transactions.There are many related transactions involved,so this paper selects this case for analysis.In view of the fact that there is a problem-related transaction leading to IPO discount,the research question in this paper is to explore the reasons and countermeasures for the rejection of the listed A-share listing from the perspective of related-party transactions.The existence of connected transactions in a listed company may not be vetoed by the CSRC.Therefore,the connected transaction is not the direct cause of the IPO of the listed company.Specifically,this paper wants to study the related transactions that lead to the IPO being denied,and why these related transactions lead to the IPO and how to deal with the related transactions for these issues.By studying the above-mentioned series of questions,it aims to sort out and attribute the cases of IPO-related transactions in the A-share market,and then propose some measures to solve the problems and prevent the occurrence of "problem-related transactions".The research ideas of this paper are:combing the related party transactions of IPOs in 2018 and summarizing the analysis,and conducting a multi-dimensional analysis of the connected transactions in the case of the Megmeet case,including the facts of related party transactions and the reasons for the related transactions.(Based on the internal environmental countermeasures)and the solution after the related party transaction,the reasons for the failure of the IPO related transaction and the countermeasures for solving the related transaction problem are summarized.The research findings of this paper are those there are two core reasons for the IPO-related transactions in China's A-share market,namely,the company's continued profitability due to business independence and the suspected fraud in related transactions.Specifically,it can be divided into four situations,including related transactions may lead to independence defects,intentional manipulation of performance through connected transactions,hidden relationship and implicit related transaction fraud,and related transactions are not related;analysis of proposed company association through CRIME model The internal causes of trading fraud include the ownership structure,the unreasonable corporate governance structure and the lack of competitiveness.For the related party transactions,the measures that can be taken include improving information disclosure,dismantling the relationship and rectifying related transactions.In addition,it can also be governed.The internal environment reduces the occurrence of fraud in related transactions,such as improving the company's shareholding structure and corporate governance structure,and improving its market competitiveness.The research contribution of this paper is that from the theoretical contribution,this paper is based on the five-factor theory of financial fraud,CRIME model,to conduct case study on the related transaction of Megmeet,and to create the CRIME model radar map.It is used to show the influence degree/contribution value of each factor on the occurrence of fraud.Through the radar chart,you can see the impact of the five factors on the occurrence of fraud and the major influencing factors.From the practical contribution,the research of this paper The conclusion is that the proposed listed company provides a solution to the problem of the IPO related transaction.