Research On The Financial Effect Of The New OTC Market Listed Companies Transfer

Since the expansion of the New OTC Market in 2013,the number of listed enterprises has increased rapidly.However,a series of problems,such as serious liquidity differentiation,relatively low valuation and weak financing ability,restrict the sustainable and healthy development of some listed enterprises.Therefore,many listed companies in the New OTC Market seek to transfer to the high-level capital market to solve their financing problems.On June 13,2019,the launch of the STAR Market is a listing opportunity for enterprises with low profitability but strong technology and great potential.Therefore,the shift of the New OTC Market to the science and technology innovation board has become one of the hottest topics in the capital market in recent years.Enterprises are approved to transfer the board,which means that their operating results and financial indicators have been recognized by the capital market and investors.However,after the successful transfer of the board,whether the transfer can bring positive financial effects,whether they have stable operation ability and sustainable profitability is worth exploring.Based on the relevant theories of enterprise board transfer,this paper selects the first batch of enterprises that successfully transferred from the New OTC Market to the START Market as the case study object.By analyzing the background and motivation of the transfer,this paper reveals the whole process of the transfer from the New OTC Market to the START Market,and mainly demonstrates the financial effect and advantages of the transfer from the New OTC Market to the START Market through financial indicators,market reaction and enterprise value The paper also puts forward some suggestions.Due to the expansion of enterprise scale and the financing limitations of the New OTC Market market,Micro-Tech Company began to seek the transfer of the board in2016.After the failure of listing on the main board and gem,it successfully transferred to the science and technology innovation board in 2019.This paper analyzes the financial effect of the successful transfer of Micro-Tech from three dimensions: the change of financial indicators,market reaction and enterprise value,and points out: from the perspective of financial indicators,the solvency has been rapidly enhanced,the asset structure has been improved after the transfer,and the enterprise can make good use of financial leverage to expand the production scale.The asset structure has been improved after the board transfer;in terms of market reaction,based on the excellent performance of the enterprise before and the broad prospect of its market,it has been sought after by the market and institutions,the stock liquidity has been enhanced,and the shareholder wealth has also been rapidly accumulated;in terms of enterprise value,after the board transfer,the company has paid more attention to independent R&D and continuously increased R&D investment It will bring innovation power and new profit growth point for enterprises.With the expansion of enterprise scale and the increase of brand effect after listing,the market share of enterprises is also increasing.In general,the board transfer has brought positive financial effects to Micro-Tech Company.This paper puts forward three enlightenments for other enterprises to be transferred: first,enterprises should rationally choose the way of transfer according to their own development;second,successful transfer is not once and for all,and should pay attention to long-term development and standardized growth;third,we should improve the multi-level market conversion and delisting system,and strengthen the liquidity of China’s multi-level market.