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

Journal of Risk and Financial Management

Hai Long¹  Yu Chen²  Xiaochen Lin² 

[1] Business School, Wuchang University of Technology, Wuhan 430223, China;International College, Krirk University, Bangkok 10220, Thailand;

关键词: post-IPO;    firm performance;    IPO capital;    entrepreneurship;   

DOI  :  10.3390/jrfm14090424

来源: DOAJ

【 摘 要 】

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.

【 授权许可】

Unknown