IPO System, Social Experience of Sponsor Representatives and IPO Performance

Abstract

Based on the background of the pilot implementation of the registration system in Shanghai Stock Exchange, this paper studies the impact of the social experience of the sponsor representatives on IPO performance, to explore whether the sponsor representatives with rich social experience can better play their information production and certification intermediary functions in the securities issuance market, thereby improving IPO performance. The research finds that: the social experience of the sponsor representatives has a more effective inhibition on the earnings management level of the companies to be listed under the registration system; The social experience of the sponsor representative has a more effective inhibition on the IPO underpricing rate on the first day under the registration system; Under the registration system, the promotion of social experience of the sponsor representative on the long-term return of listed companies is more effective.