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Penetrating the real performance of SSE STAR enterprises: A double-market investigation

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  • Zhou, Wei
  • Gu, Ruitao
  • Lu, Shuai

Abstract

A significant innovative board called the SSE Sci-Tech innovation board (SSE STAR) was established on June 13th, 2019 in China. For its short establishment period and lack of information, it is biased for investors to employ single financial indictors to estimate their performance. Therefore, we attempt to investigate the real performance of the SSE STAR enterprises by merging two relative markets, namely the production and finance markets. To do so, this paper firstly proposes a production-finance market network and analyzes its sealed and open forms. Then, based on the proposed network models and the real data of the 57 SSE STAR enterprises, we conduct an empirical study. The results show that most of the enterprises’ efficiencies are low on this new financial market. Furthermore, to penetrate their sustainable potential in the production market, we also subdivide enterprise characteristics such as establishment period, specific industry and geographic location, to analyze the differences. Lastly, some useful suggestions are provided for investors to assist them with their investment decision making on this burgeoning financial market.

Suggested Citation

  • Zhou, Wei & Gu, Ruitao & Lu, Shuai, 2020. "Penetrating the real performance of SSE STAR enterprises: A double-market investigation," Finance Research Letters, Elsevier, vol. 37(C).
    • Handle: RePEc:eee:finlet:v:37:y:2020:i:c:s1544612319306579
    DOI: 10.1016/j.frl.2019.101346
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    Cited by:

    1. Wei Liu & Yoshihisa Suzuki & Shuyi Du, 2024. "Forecasting the Stock Price of Listed Innovative SMEs Using Machine Learning Methods Based on Bayesian optimization: Evidence from China," Computational Economics, Springer;Society for Computational Economics, vol. 63(5), pages 2035-2068, May.

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