A comparative study and empirical analysis was made based on the behavior of Chinese small and medium-sized enterprises (SMEs) in choosing the Growth Enterprise Market (GEM) or the New Third Board at the time of listing and their betting choices before listing. In the thesis, the key factors and the influence degree of these factors on the listing choices of SMEs were studied; under what conditions growing SMEs participated in betting and which behavior or characteristics affected the decision-making of SMEs were explored; and the theoretical research framework of listing choices and betting behavior of SMEs was established to provide reference for the decision-making on listing choice of SMEs, and to guide SMEs to correctly use the Valuation Adjust Mechanism (VAM) agreement to reduce the risk of betting and promote the healthy and stable development of enterprises.
10 hypotheses were tested by a sample of listing choices of 2,106 SMEs and a sample of betting choices of 716 SMEs, and a quantitative analysis was carried out by using the Logistic model.
The listing choices of enterprises were significantly and positively affected by the willingness and innovation abilities of enterprises, and significantly affected by the interaction of the willingness and innovation abilities of enterprises. The betting choices of enterprises before listing were significantly affected by the ownership structure and the method of equity transfer. The betting choices of enterprises before listing were negatively affected by the equity transfer of major shareholders with the increase of the number of investment institutions. Compared with capital increase, the inverse relationship between equity transfer and betting was weakened with the increase of the number of investment institutions.
Due to the limited information of pre-listing investment and betting of enterprises disclosed by the GEM, and the difficulty of sample data collection, the sample size of betting enterprises on the GEM was smaller than that of the New Third Board.
The listing choices of SMEs were affected by their innovation willingness, innovation abilities and expansion willingness. Enterpriese with stronger innovation willingness, innovation abilities and expansion willingness should choose to be listed on the GEM, from which they might obtain a larger scale of financing to achieve the expansion. SMEs should sign the VAM agreement with venture capital deliberately, so as not to exert pressure on the management of enterprises, resulting in the blind expansion of the management in order to achieve the objectives of betting.
The motivations and influence factors of listing choices and betting behavior of SMEs were revealed by the research, which provided quantitative decision-making conditions for the listing and financing of SMEs, and new ideas for studying the listing and financing behavior of SMEs. It played an important theoretical and practical role in guiding investment institutions to take reasonable investment behavior and evade investment risks, and guiding SMEs to correctly use the VAM agreement to reduce the risk of betting and promote the healthy and stable development of enterprises.
The influence model of the willingness and abilities of enterprises on the listing choices, and the influence model of the ownership structure and the method of equity transfer on the betting choices, were tested empirically. The decision-making model of listing choices and pre-listing betting of enterprises were established.
Capital market, listing choice, VAM agreement, New Third Board, Growth Enterprise Market, china