A Case Study Of The Reasons For The Failure Of LX’s IPO

Starting from the theory of information asymmetry,this paper first explores the relationship between different roles in the process of IPO declaration,then briefly expounds the different theories on the review system of public listing at home and abroad,and combs the views of some domestic and foreign scholars on the issues of initial public offering.In the context of the rapid development of China’s economy,timely and timely seeking to cooperate with the capital market to achieve IPO listing is the priority choice for enterprises to make themselves invincible in the changing market.However,under the requirement of "no restricted area,zero tolerance,full coverage and life-long accountability" of China Securities Regulatory Commission,the proportion of IPO rejection is increasing year by year.How to avoid the fate of rejection and successfully realize listing is worth exploring.This paper analyses the reasons for the IPO declaration of the proposed listed companies,introduces the process of IPO declaration,summarizes the key issues of the review of the SFC and the reasons for focusing on these issues,and understands the different requirements of the SFC for the proposed listed companies in different economic environments.Combining with the relevant theoretical research of IPO at home and abroad,this paper summarizes the reasons why 86 companies failed to declare their IPOs in 2017.By carefully comparing the various concerns of the Development and Review Commission,it analyses the evaluation criteria of each index of the Securities Regulatory Commission,with a view to giving some inspiration to the enterprises to be listed and the sponsors to help them to be listed,such as what should be avoided in the daily operation of the enterprises to be listed.Questions,how to standardize business and financial accounting,what problems should sponsors pay attention to in the process of counseling and listing,and how to help enterprises achieve listing goals faster and more legally.Choose LX company as a typical case of failure of IPO declaration,and further analyze the reasons of failure from various relevant angles.Find out that LX company has problems in persistent profitability,internal control system,financial accounting and other aspects.Understand the causes of these problems and their impact on the later development of the enterprise,and put forward suggestions to the company after combing these contents.Finally,combining theory with case study,this paper suggests that listed companies should pay attention to improving their sustained profitability and looking for new profit growth points,improve internal control system,implement internal supervision,rationally select accounting policies and optimize financial data when planning to go public.It is hoped that after a series of improvements,the planned listed companies will change from "sick" IPO to "healthy" IPO to achieve the goal of listing.