Research on the Financing Performance of Listed Companies on my country's Growth Enterprise Market —Based on DEA-Malmquist index analysis

The Growth Enterprise Market, also known as the second board market, is a convenient and simple financing market for small and medium-sized enterprises that cannot meet the listing conditions of China's main board market in the short term and have a small growth and development space. In my country's Growth Enterprise Market, it has become a gathering place for high-tech companies such as biology and information technology, laying a foundation for my country's future development of high-tech technology, and strengthening my country's comprehensive national strength. This paper uses the DEA-Malmquist index method to analyze the financing performance of 10 listed companies on my country's GEM from 2016 to 2020, and draws the results of the study: different years of financing environment are different, which has a greater impact on the financing performance of GEM companies; Problems in the management of the funds raised by the target company’s financing will have a greater negative impact on its financing efficiency.

CAN FOUNDERS’DUAL ROLESFACILITATE INNOVATION? – FROM THE PERSPECTIVE OF FOUNDERS’ R&D NETWORK CHARACTERISTICS

Founders are crucial for the start-ups, which in turn makes it very important to study how founders’ behaviour affects the development of the start-ups. Based on the data of the companies listed on Growth Enterprise Market (GEM) and Small & Medium Enterprise (SME) board from 2014 to 2017 in China, this paper explores the impact of founders’ dual roles of R&D and management on enterprises’ innovation performance from the perspective of founders’ R&D network characteristics. The empirical research reveals that the more an enterprise’s founders participate in the R&D activities and the more central they are in the R&D network, the better the enterprise’s technological innovation performance. It is because the high network centrality enables founders the stronger ability of innovation and opportunity identification and draws their attention to innovation. This research further discloses that the promotion effect is restrained when enterprises obtain more government subsidies and founders have more power. Italso finds that founders’ R&D role does not transform the innovation output into enterprises’ value effectively though the role increases the innovation output, instead, it even restrains the transformation.

Why the Operating Performance of Post-IPO Firms Decreases: Evidence from China

Based on a database of 200 listed firms from the Growth Enterprise Market of China, this paper employs regression models to investigate the significance of IPO capital expenditure to firms’ operating performance. It suggests that a vast majority of pre-IPO money is spent on business development to promote operating performance in order to meet IPO requirements. After the IPO, most of the money is transferred to equity investments in order to increase the firms’ market value quickly, which leads to operating performance decline and deterioration.

Do Board Characteristics Matter for Growth Firms? Evidence from China

Previous research on the effect of board characteristics mostly examines established firms. This raises the question of whether the findings from the board characteristics literature are applicable to rapidly growing enterprises, as their corporate governance landscape can be very different from that in large, mature companies. Our paper extends the corporate governance literature by investigating the performance implications of board characteristics in startups using a unique set of firms: 121 startups operating in the information technology industry listed on the Growth Enterprise Market (GEM) in China. Using a firm performance indicator constructed through the factor analysis method, we find significant correlations between firm performance and board size, age structure, board meeting frequency, and board ownership of shares. Our findings contribute to the corporate governance literature by shedding new light on the performance implications of board characteristics for startups operating in fast-paced industries.

Modeling the Impacts of Venture Capital Investment on Firm Innovation

Taking firms listed on the Chinese Growth Enterprise Market (GEM) in 2008–2017 as the sample, this study investigates the impact of venture capital (VC) investment on Chinese firm innovation using propensity score matching and a difference-in-differences (PSM-DID) model. The results show that, overall, firms’ innovation inputs and outputs do not show obvious enhancement due to VC entry, but instead show a strong and then weak inhibitory effect. VCs have heterogeneous impacts on firm innovation; that is, compared to other types of firms, firms with technology-dependent characteristics and firms whose actual controllers are experts in the same industry can effectively mitigate the adverse impact of VC on innovation inputs and gradually promote growth in the quantity and quality of the innovation outputs after the second year of VC entry. This study not only reveals the impact of VC on firm innovation activities in the Chinese capital market but also provides empirical evidence to help improve the financial innovation service system and the use of the capital market to promote innovation in China.

Does venture capital help to promote open innovation practice? Evidence from China

PurposeThe study aims to empirically study the effect of venture capital on open innovation of China's enterprises.Design/methodology/approachThis paper selects China's A-share listed companies on the small and medium-sized enterprises (SMEs) board and the Growth Enterprise Market from 2014 to 2018 as research samples to empirically study the effect of venture capital on open innovation of China's enterprises.FindingsThe authors find that venture capital can significantly promote open innovation of enterprises. This promoting effect is more significant when the venture capital institutions have profounder industry experience, higher shareholding ratio and are syndicated. Further research finds that venture capital mainly promotes open innovation through three mechanisms: increasing monetary funds, improving absorptive capacity and strengthening executive incentives, and the effect of venture capital on open innovation is significantly different under the conditions of different regions, industries and property rights.Originality/valueThis paper not only reveals the effect of venture capital on enterprises' open innovation and the specific mechanism, but also provides empirical evidence for emerging economies to build a national innovation ecosystem and make use of capital markets to accelerate innovation strategies.

Fuzzy logic neural network based growth enterprise market analysis for registration-based IPO system

In real life, the stock price is always easy to be mispriced after listing, too high or too low. There are numerous reasons behind mispricing. Many scholars believe that the information asymmetry is one of them. In an inefficient market, the information asymmetry is bound to exist and be very high. In order to investigate the impact of registration-based IPO system reforms in mispricing, this paper takes the GEM market as an example to analyze the impact of the GEM market on mispricing. And we proposed a method with fuzzy logic neural network for Growth Enterprise Market analysis for IPO system. After processing data, we use ARIMA and EGARCH model to find the results. The immaturity will result in the negative impact caused by reformation, which will deviate from the goal that makes Chinese stock market become better.

Research on the Development of Growth Enterprise Market in China

In this paper, firstly, the definition and market positioning development of GEM are summarized, and the current situation of GEM development is analyzed. At the same time, compared with the main board market, overseas GEM and mature American market, it is found that the GEM market is gradually approaching the standards of overseas markets in terms of IPO, but this is not an act of spontaneous regulation of market system because of the rapid issuance of new shares. So there is no stability, and it is still necessary to continue to make efforts in the construction of various systems. Finally, the paper puts forward some suggestions on the development of China’s GEM market, namely, actively learning from the successful development experience of overseas GEM markets and setting clear targets according to market positioning.

Social Responsibility, Institutional Environment and Stock Price Crash Risk: Evidence from Chinese GEM

The stock price crash risk has become the focus of corporate finance and macroeconomics research in recent years because it affects the stock market, listed companies, market investors and the real economy. This paper takes 1822 gem listed companies from 2011 to 2017 as samples, and empirically tests the impact of social responsibility on the risk of stock price collapse and takes into account the regulatory effect of institutional environment. The study finds that social responsibility can inhibit the stock price collapse risk of listed companies on the growth enterprise market, and the institutional environment can also inhibit the risk of stock price collapse of listed companies on the growth enterprise market. Considering the influence of the institutional environment, the influence of social responsibility on the risk of stock price collapse of listed companies on the growth enterprise market is more obvious, which shows that the institutional environment has a moderating effect between social responsibility and the risk of stock price collapse. This conclusion still exists after considering the endogenous influence. Further research shows that the inhibiting effect of social responsibility and the regulating effect of institutional environment are more obvious among gem listed companies in the first year of listing.