The Research on the Relation between Accountancy Firm’s Expertise and IPO Approval —— Empirical Studies based on SSE STAR Market

Abstract

The registration system reform with information disclosure as the core is a major institutional innovation in China's capital market in recent years. Compared with the "government-led" approval system, the pilot registration-based review system for the Science and Technology Innovation Board is characterized by "market-led, government-supervised”. In this context, how to better play the role of intermediaries and realize the benign interaction of "gatekeeper" supervision to protect the interests of investors is an important issue. An empirical analysis is made on IPO approval and IPO time used using the measurement of accountancy firm expertise model. The results of both models show that accountancy firm expertise have no significant impact on IPO approval and IPO time used, by contrast, ROA and have significant impact on IPO approval and IPO time used, that is to say, it depends more on the financial situation of the enterprise to influence the IPO approval and IPO time used of the enterprise.