The impact of disclosure characteristics of application texts on the Science and Technology Innovation Board listed companies

Abstract

This paper studies the impact of disclosure characteristics of the application texts on the successful listing of companies on the Science and Technology Innovation Board. The application texts include registration statements, inquiry letters, and response letters. The disclosure length, fog index, and redundancy are the disclosure characteristics of these three types of application texts. In the empirical analysis, we select 273 companies that have applied for listing on the Science and Technology Innovation Board from June 19, 2019, to January 31, 2021, as the research sample. Among them, 214 companies were successfully listed, and 59 companies failed to go public. By extracting the disclosure characteristics of three types of application texts, we established a logistics regression model to study the impact of disclosure characteristics of the application texts on the successful listing of companies on the Science and Technology Innovation Board. The empirical results show that the fog index of both registration statement and response letter has no significant impact on the companies’ successful listing. The disclosure length and redundancy of the registration statement are positively related to the company’s successful listing, while the number of questions of the inquiry letter and the disclosure length and redundancy of the response letter are negatively related.