Research on the Mechanism of IPO Affecting Operating Performance: Based on the Dynamic Perspective of Competitive Strategy

Abstract

Abstract: Based on the dynamic characteristics of product market competition, this paper first constructs a stochastic differential game model, and then explores the internal mechanism of IPO affecting the operating performances of an IPO candidate and its incumbent enterprises from the dynamic perspective of competitive strategy, considering that IPO may change the competitive landscape of product market. In addition, this paper conducts empirical tests by using the nonlinear least square method to estimate the parameters of the dynamic structured model and calculating the proxy indicators. Theoretical analysis and empirical research show that since IPO enables an IPO candidate to be more competitive in the product market, it will encourage the IPO candidate and its incumbent peers to adopt a positive differentiation strategy, leading to differential competitions in the product market. Therefore, the post-IPO market share and profit conversion rate of the IPO candidate increase, while the market share of its incumbent peers decreases. However, due to the improvement in their profit conversion rates, the incumbent enterprises receive less negative impact from the candidate’ s IPO on their market value. Furthermore, in industries where product market competition is more intense, the post-IPO market share of the incumbent enterprises declines more significantly, and the profit conversion rate of the IPO candidate rises more significantly. The results improve and enrich the researches on post-IPO operating performance in theory and quantitative analysis, which has a positive reference for enterprises’ operation and management.

Key words: dynamic product market competition, IPO, competitive strategy, operating performance

Hu Zhiqiang, Pei Kaibing, Zhu Wenda. Research on the Mechanism of IPO Affecting Operating Performance: Based on the Dynamic Perspective of Competitive Strategy[J]. Management Review, 2022, 34(8): 243-255.

References

[1] Pastor L., Taylor L. A., Veronesi P. Entrepreneurial Learning, the IPO Decision, and the Post-IPO Drop in Firm Profitability [J]. Review of Financial Studies, 2009,22(8):3005-3046
[2] Hsu H. C., Reed A. V., Rocholl J. The New Game in Town: Competitive Effects of IPOs[J]. The Journal of Finance, 2010,65(2):495-528
[3] Chod J., Lyandres E. Strategic IPOs and Product Market Competition[J]. Journal of Financial Economics, 2011,100(1):45-67
[4] 雷辉,杨丹. 基于创新投入的企业竞争战略对绩效的影响[J]. 系统工程, 2013,31(9):114-120
[5] Jain B. A., Kini O. The Post-issue Operating Performance of IPO Firms[J]. The Journal of Finance, 1994,49(5):1699-1726
[6] Wang C. Ownership and Operating Performance of Chinese IPOs[J]. Journal of Banking & Finance, 2005,29(7):1835-1856
[7] 周孝华,吴宏亮. 基于中小板上市公司IPO前后业绩变化的实证研究[J]. 技术经济与管理研究, 2010,(6):19-22
[8] 逯东,万丽梅,杨丹. 创业板公司上市后为何业绩变脸? [J]. 经济研究, 2015,(2):132-144
[9] 唐文秀. IPO公司产品市场竞争效应——基于中国制造业上市公司的实证研究[J]. 管理世界, 2017,(5):184-185
[10] 刘烨,吕长江. 公司IPO盈余管理路径研究——以贵人鸟为例[J]. 南开管理评论, 2015,18(6):81-89
[11] 黄俊,李挺. 盈余管理、IPO审核与资源配置效率[J]. 会计研究, 2016,(7):10-18
[12] 祁怀锦,黄有为. IPO公司盈余管理行为选择及不同市场间的差异[J]. 会计研究, 2016,(8):34-41
[13] 王宜峰,张颜江,王燕鸣. IPO竞争作用研究[J]. 投资研究, 2015,34(4):143-159
[14] Velamuri S. R., Liu W. Ownership Structure, Insider Behavior, and IPO Performance of SMEs in China [J]. Small Business Economics, 2017,48(3):771-793
[15] 张永明,潘攀,邓超. 私募股权投资进入对上市公司IPO当年业绩的影响研究[J]. 管理科学, 2018,31(1):149-160
[16] 张学勇,张秋月. 券商声誉损失与公司IPO市场表现——来自中国上市公司IPO造假的新证据[J]. 金融研究, 2018, (10):141-157
[17] 孔东民,王亚男,代昀昊. 为何企业上市降低了生产效率? ——基于制度激励视角的研究[J]. 金融研究, 2015, (7): 76-97
[18] 王克敏,杨国超,刘静,等. IPO资源争夺、政府补助与公司业绩研究[J]. 管理世界, 2015,(9):147-157
[19] Andriansyah A., Messinis G. Intended Use of IPO Proceeds and Firm Performance: A Quantile Regression Approach [J]. Pacific-Basin Finance Journal, 2016,36:14-30
[20] Amor S. B., Kooli M. Intended Use of Proceeds and Post-IPO Performance[J]. The Quarterly Review of Economics and Finance, 2017,65:168-181
[21] 袁德利,陈小林. 企业跨境上市、战略风险治理与竞争优势[J]. 管理评论, 2018,30(6):184-195
[22] 胡志强,胡渊,狄晨晨. IPO前后的企业产品差异化动态策略——引入股价信息学习的模型与实证[J]. 中国管理科学, 2020,28(5):52-61
[23] Stoughton N. M., Wong K. P., Zechner J. IPOs and Product Quality[J]. Journal of Business, 2001,74(3):375-408
[24] Jong A. D., Huijgen C. A., Marra T. A., et al. Why do Firms Go Public? The Role of the Product Market[J]. Journal of Business Finance & Accounting, 2012,39(1-2):165-192
[25] Ergincan Y., Kiraz F., Uysal O. Why Go Public? An Empirical Analysis of IPO’s Competitive Effect on Turkish Firms[J]. International Journal of Commerce and Finance, 2016,2(1):91-101
[26] Hsu H. C. Industry Technological Innovations and Initial Public Offerings: An Empirical Analysis[J]. Journal of Accounting and Finance, 2014,14(1):103-120
[27] Akhigbe A., Johnston J., Madura J. Long-term Industry Performance Following IPOs [J]. Quarterly Review of Economics & Finance, 2006,46(4):638-651
[28] 王燕鸣,楚庆峰. 沪深股市IPO行业板块效应研究[J]. 金融研究, 2009,(1):151-164
[29] 周业安,杨腾. 公司IPO会对已上市公司的股价产生影响吗? [J]. 南开经济研究, 2011,(5):33-49
[30] 张峥,吴偎立,黄志勇. IPO的行业效应——从竞争和关注的角度[J]. 金融研究, 2013,(9):180-192
[31] 胡志强,祝文达,王一竹. IPO行业竞争效应——基于产品市场竞争博弈模型的实证研究[J]. 预测, 2017,36(4):43-49
[32] Spiegel M., Tookes H. Why does an IPO Affect Rival Firms? [J]. The Review of Financial Studies, 2020,33(7):3205-3249
[33] Porter M. E. Competitive Strategy: Techniques for Analyzing Industries and Competitors[M]. New York: Free Press, 1980
[34] 雷辉,王亚男,聂珊珊,等. 基于财务绩效综合指数的竞争战略绩效时滞效应研究[J]. 会计研究, 2015,(5):64-71
[35] 刘端,王雅帆,陈收. 财务冗余对企业竞争战略选择的影响——基于中国制造业全行业实证数据[J]. 系统管理学报, 2018,27(2):208-218
[36] Brett M. R. Cost Leadership or Differentiation? Applying Porter’s Competitive Strategies in Ecotourism: A Case Study of Mkhuze Game Reserve[J]. African Journal of Hospitality, Tourism, and Leisure, 2018,7(2):1-27
[37] Kaya N. Corporate Entrepreneurship, Generic Competitive Strategies, and Firm Performance in Small and Medium-sized Enterprises[J]. Procedia-Social and Behavioral Sciences, 2015,207:662-668
[38] Perlines F. H., Garcia J. M., Araque B. Y. The Mediating Role of Competitive Strategy in International Entrepreneurial Orientation[J]. Journal of Business Research, 2016,69(11):5383-5389
[39] Mintzberg H. Generic Strategies: Towards a Comprehensive Framework[M]. London: JAI Press, 1988
[40] Mintzberg H. Patterns in Strategy Formation[J]. Management Science, 1978,24(9):934-948
[41] Sitawati R., Winata L., Mia L. Competitive Strategy and Sustainable Performance: The Application of Sustainable Balanced Scorecard[J]. Issues in Social and Environmental Accounting, 2015,9(1):51-75
[42] 郑兵云,陈圻,李邃. 差异化战略对企业绩效的影响研究——基于创新的中介视角[J]. 科学学研究, 2011,29 (9): 1406-1414
[43] 郑兵云,陈圻,李邃. 竞争战略对企业绩效的影响研究[J]. 管理评论, 2011,23(7):101-107
[44] Gyampah A. G., Acquaah M. Manufacturing Strategy, Competitive Strategy and Firm Performance: An Empirical Study in a Developing Economy Environment[J]. International Journal of Production Economics, 2008,111(2):575-592
[45] Ortega M. J. R. Competitive Strategies and Firm Performance: Technological Capabilities Moderating Roles[J]. Journal of Business Research, 2010,63(12):1273-1281
[46] Bayraktar C. A., Hancerliogullari G., Cetinguc B., et al. Competitive Strategies, Innovation, and Firm Performance: An Empirical Study in a Developing Economy Environment[J]. Technology Analysis & Strategic Management, 2017,29(1):38-52
[47] 张伟,汪涛. 如何应对非正式竞争? 不同产品创新战略及其对企业绩效的影响[J]. 管理评论, 2019,31(5):89-99
[48] 唐文秀. IPO公司产品市场竞争效应研究及实证分析[D]. 重庆大学博士学位论文, 2015
[49] Banker R. D., Mashruwala R., Tripathy A. Does a Differentiation Strategy Lead to More Sustainable Financial Performance than a Cost Leadership Strategy? [J]. Management Decision, 2014,52(5):872-896
[50] 吴超鹏,唐菂. 知识产权保护执法力度、技术创新与企业绩效——来自中国上市公司的证据[J]. 经济研究, 2016,(11): 125-139