Research on the Influencing Factors and Estimation Model of Enterprise Value: Evidence from China's New OTC Market

Abstract

As a national securities trading venue for small and medium-sized enterprises, China's new over-the-counter (OTC) market, also known as the "new third board", plays an important role in China's economic development. To accurately estimate the value of enterprises listed on the China's new OTC market and help investor to make better investment decisions, we first construct a comprehensive factor system that may affect the market value of enterprises. Then, we design an ensemble valuation model based on XGboost and random forest with the selected influencing factors. Experimental results show that the proposed valuation model can significantly improve the accuracy of the valuation for the enterprises listed on China's new OTC market compared with traditional valuation models.