Analysis Of The Motivation And Effect Of Enterprises On The New Third Board Turning To The Board

First run on a pilot basis in 2006,the New Third Board market is an integral part of China’s multi-level capital market,providing a valuable financing and trading platform for SMEs with its low entry threshold and high inclusiveness.With the dramatic expansion of the New Third Board market in 2013,the number of its listed enterprises also saw an explosive rise,but at the same time,problems of the market began to emerge,such as insufficient liquidity,poor financing ability and discounted enterprise valuation,which restricted the further development of a large number of quality enterprises and thus led these enterprises to start planning for transfer to the Board for better development.Since 2017,due to the above reasons,coupled with the promotion of the government’s transfer policy,the number of enterprises applying for transfer in the NSS market has surged,thus making the transfer and listing of NSS enterprises a hot topic at the moment.In recent years,more and more companies have successfully transferred to the board.What are the costs of transferring to the board,what are the motivations for seeking to transfer to the board,what are the options for transferring to the board,and what are the effects of a successful transfer to the board and whether it can lead to further development of the company are all questions that are being explored by academics and practitioners at present.This paper firstly compares the domestic and international literature on the New Third Board(NSPB)and reboarding,and then introduces the theoretical concepts related to the NSPB and reboarding,clarifying the content of signaling theory,enterprise financial growth cycle theory and optimal renewal financing theory,which are used as the main theoretical basis for the analysis of this paper.Secondly,we analyse the transfer profile of NSSB enterprises from the perspective of the current situation of the NSSB market and the transfer policy and approach,followed by the selection of Billion Time as a case study enterprise with industry representativeness and successful transfer,and introduce the basic profile of the case study enterprise and its transfer situation.After that,the case company’s basic profile and its reboarding situation are introduced.Then,the motivation for its reboarding is studied in terms of external market factors and internal development factors of Eight Billion Hours,taking into account the background and theoretical foundation of the previous article.Finally,through the analysis,it is found that the transfer of the company’s shares has had a positive effect on the company,as the transfer of the company’s shares has increased its liquidity,increased the wealth of its shareholders,increased its financing capacity,improved its financial indicators to a greater or lesser extent,and given the company good prospects for development.At the end of the paper,a summary is provided and effective insights are provided for the New Third Board companies and regulatory agencies interested in switching to the New Third Board market.This article analyzes the conditions,processes,motivations,and effects of the transition from the New Third Board to the Science and Technology Innovation Board through the study of specific cases.It is hoped that this article can provide some reference for future companies interested in transitioning to the New Third Board.At the same time,it is hoped that this study can improve the relevant theories of the transition to the New Third Board to a certain extent.