Abstract
This paper investigates the impact of the registration-based IPO reform on firms’ cost of equity capital using samples of Chinese A-share listed firms. The results indicate that registration-based IPO reform significantly reduces the cost of equity capital. This effect is mainly observed in firms with higher-reputation underwriters, higher intensity of review inquiries, or higher institutional ownership. In addition, the mechanisms driving these reductions are enhanced information disclosure and improved IPO pricing efficiency.
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