A study on the impact of technological innovation attributes on listing success rate and post-listing performance

• Main Author: XU, Yijun
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: registration system; STAR Market; technological innovation attributes; listing success rate; post-listing performance; Finance; Finance and Financial Management; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/etd_coll/441; https://ink.library.smu.edu.sg/context/etd_coll/article/1439/viewcontent/GPBF_AY2022_PhD_XUYIJUN.pdf
• Institution: Singapore Management University

"Key and core technology" enterprises form the backbone of great powers. China’s STAR Market (technological innovation board) is committed to implementing strategies that will lead to technological innovation-driven sustainable development and strengthen the country by building a secure and independent industrial chain that can support the development of cutting-edge technology. From the outset, the STAR Market put forward clear requirements for "key and core technology" enterprises. The technological innovation attributes of the enterprises listed on the STAR Market are the most essential core characteristics, but a question arises as to how best to evaluate their technological innovation attributes. Are these related to their listing success rate or their post-listing performance? In addition, is there a significant difference in the influence of technological innovation attributes on the listing success rate for different types of enterprises or enterprises with different kinds of property rights? The answers to these questions are of potentially enormous significance to government departments, investment institutions, enterprises, etc. Few Chinese scholars have studied the listing success rate of enterprises. In this study, principal component analysis (PCA) was used to transform various specific evaluation indicators of technological attributes into a comprehensive index: the Technological Innovation Index (TII). By controlling factors such as asset size, asset-liability ratio, net profit, and the year of listing, a regression analysis model was constructed that was then used to empirically analyze the influence of the TII on the listing success rate, post-listing performance, and growth of different enterprises. The results show that positive technological innovation attributes significantly improve the listing success rate of enterprises and are positively correlated to their long-term post-listing performance, though they suppress their short-term performance. The impact of technological innovation attributes on the listing success rate does not vary according to the type of enterprise or its property rights. However, there are significant differences in the contribution of each technological innovation attribute to the TII. In order from high to low, these are: the intensity of R&D investment; the level of R&D investment; the personnel structure; and the number of patents held. The TII and related findings can help enterprises to improve their own technological innovation attributes so as to increase their listing success rate. They can also help policy makers to ongoingly improve and optimize the TII, so that it can assist with identification of the most promising high-tech enterprises and the promotion of a national strategy towards establishing China as a science and technology giant. The TII can also help investors to screen technological enterprises and ensure they make the most effective investments by improving the efficiency of their use of capital and maximizing their return on investment. Overall, the results of this study not only enrich theoretical research on the listing success rate of enterprises, but also encourage enterprises, investors, financial institutions, etc., to pay more attention to technological innovation. This may encourage enterprises to increase their R&D investment and technological innovation. Beyond this, the study aims to contribute to the transformation and upgrading of the Chinese economy and to stimulate capital market reform and development, in terms of both theory and practice.