Research on the Impact of CFO Background Heterogeneity on IPO Under-Pricing

Abstract

In the current market, IPO underpricing is widespread, which will bring a series of serious consequences to the company and the whole market. In the enterprise, the chief financial officer (CFO), as the financial core of the senior management, bears incomparable responsibilities for the enterprise finance. The role of the chief financial officer can be further reflected in the IPO process of the company. Generally speaking, the CFOs in different stages of listing are different, so their impact on IPO underpricing is also different. Based on this background, this paper takes the micro perspective of CFO's personal characteristics as the starting point to explore its impact on IPO underpricing rate. Firstly, this paper summarizes and introduces the relevant domestic and foreign research on the influencing factors of IPO Underpricing and the background characteristics of CFO. On the basis of understanding the research conclusions made by existing scholars, this paper considers the current market situation, studies relevant theories, considers the expected purpose, and puts forward a series of hypotheses combined with the existing results. Secondly, select effective indicators and models for empirical analysis to test the impact of the background characteristics of the CFO on the IPO underpricing range, and analyze whether the gender characteristics, educational characteristics and financial professional background characteristics of the CFO have a significant impact on the IPO underpricing range. Finally, according to the research results, this paper puts forward relevant suggestions to reduce IPO Underpricing and summarizes it.