| The Implementation Opinions on the STAR Market's Establishment and its Pilot Registration System in Shanghai Stock Exchange(SSE)was issued from China Securities Regulatory Commission(CSRC)on 30th January,2019.On 1st March of the same year,CSRC issued the Administrative Measures on the STAR Market's IPO(Initial Public Offerings)Registration(Trial)and the Measures of Ongoing Supervision on Listed Companies on the STAR Market(Trial).On 13th June,2019 the STAR market was officially opened with the first batch of companies listed on the STAR market on 22nd July of the same year,which initiated the practice phase of China's reform on the stock issuance registration system.Such reform action was targeted at an comprehensive goal of establishing the stock issuance registration system which is market-oriented,information disclosure-based and of clear-cut responsibility,explicit expectation and effective supervision.This meant China's reform on the stock issuance system underwent a fundamental mechanism transfer from approval to registration.The approval mechanism was centered around the“substantive review”on the stock issuance review commission subordinated to CSRC,while the registration mechanism is more market-oriented with not CSRC's“substantive review”on a stock value,issuer's profitability,finance,and prospect but issuers'valuation back to the stock market.The IPO market emphasized on an overall information disclosure and its supervision.Compared with No.1:Standards of the Contents and Forms of Public Listed Companies-Prospectus(Revised in 2015),No.41:Standards of the Contents and Forms of Public Listed Companies-Prospectus for STAR Market Companies added the required information disclosure of innovation,prospect and competition,and the detailed risks as well.As defined key issues information in this thesis,all above differentiated information were required to be disclosed by issuers in the STAR market.In the Administrative Measures on the STAR Market's IPO Registration(Trial),it is regulated that“stock exchange plays the role of raising review inquiry accordingly answered by issuers,and then decides the issuers'qualification from the STAR-market-oriented issue terms and requirements of listing and information disclosure”,which is the current undergoing supervision in the STAR market on the issuers'information disclosure by SSE's review inquiry.But what effects did such supervision measures bring out?Did they actively urge the key issues information disclosure from the issuers in the STAR market?What influences did the SSE's review inquiry and the information disclosure level of key issues bring to the IPO pricing efficiency?For further study and better solutions to above questions,this thesis had such a topic titled in the very beginning.Firstly,with the responsive regulatory theory and the attention-based view,a systematic analysis discovered the review inquiry influences on the STAR market's key issues information disclosure level.From the form and content of the SSE's review inquiry,a base of evaluation index was designed for the key issues information disclosure level in the STAR market.Secondly,combined with information asymmetry theory and signal transmission theory,a systematic analysis revealed the key issues information disclosure level's influences on the IPO pricing efficiency in the STAR market,and as well as the differences brought by the improvements of the innovation,prospect and competition information disclosure to influence the IPO pricing efficiency in the STAR market.Thirdly,with a more complete logic chain of“review inquiry?upgrade of key issues information disclosure?IPO pricing efficiency”,the upgrade of key issues information disclosure functioned as mediation to IPO pricing efficiency in the STAR market.Finally,a hypothesis was made according to the research proposition,taking research samples of the listed companies on China's STAR market from 2019 to 2020 to conduct an empirical analysis for the specific research conclusions.By theoretical analysis and empirical researches in the thesis,conclusions mainly included three aspects.One,the SSE's review inquiry impacts on the key issues information disclosure in the STAR market was very complicated in a course of IPO processing,in which many participants were actively involved.As a new type of IPO regulator in China's reform on the stock issuance registration system,the SSE was nearly blank in related literature on what its role-play was,how it functioned to supervise and how it influenced issuer's information disclosure in the IPO phase.Started with the SSE's review inquiry in the IPO phase,review inquiry was found a pattern to govern strongly in the thesis.By review inquiry from when issuers presented prospectus to when the IPO registered successfully,the SSE would actively get itself involved in each individual companies'IPO and communication with issuers.In order to obtain further details,the methodology of Lowry et al.(2020)was used as reference to analyze the content features of the SSE's review inquiry on a basis of manual sorting of the form features of the SSE's review inquiry.With the quantitatively strengthened inquiries on each individual topics subdivided by LDA topic-analysis,the review inquiry was further categorized by innovation,prospect,competition,risk,operative performance,solvency and liquidity,finance status.And a test model was created to make a deep analysis on how the form and content features of review inquiry might bring different influences to the key issues information disclosure level.Conclusions from the empirical research were as follows:(1)The rise of the key issues information disclosure level was closely related to the tensity of the SSE's review inquiry.Specifically,the greater tensity was from the SSE's inquiry on the companies'IPO in the STAR market,the higher rise rate was from the key issues information disclosure by issuers in the STAR market.Besides,there existed non-significant relation between the key issue disclosure level and the inquiry of operative performance,solvency and liquidity,finance status.(2)With three means,the instrumental variable method,changing the measurement pattern of review inquiry and the bootstrap method,the robustness test found the research conclusion consistent with the main test.(3)Further tests found some aspects brought the positive regulating effects on the key issues information disclosure level,such as the issuers'information asymmetry,corporate governance,underwriters'reputation and accounting firms'reputation.From the degree of issuers'information asymmetry,the review inquiry on the key issues information disclosure brought the promoting effects more significant mainly in the group of higher asymmetry.From the corporate governance,the review inquiry brought stronger governance effects to groups of lower governance,indicating review inquiry was an important external governance mechanism to supplement corporate governance.From the underwriters'reputation,the review inquiry brought stronger governance effects to groups of higher reputation,which showed those of higher reputation paid more attention to their sustainable reputation and thus would strengthen the review inquiry's role to optimize the key issues information disclosure.From accounting firms'reputation,the review inquiry brought governance effects stronger in groups of lower reputation,indicating that the review inquiry supervised the information disclosure as an important back-up for the governance improvement.Besides,a certain cost caused by review inquiry would directly extend the IPO registration duration.Two,about the key issues information disclosure's impacts on the IPO pricing efficiency in the STAR market,related conclusions were mainly as follows:(1)the extent of key issues information disclosure upgrade existed a positive relation to the IPO pricing efficiency.For that the IPO underpricing rate reflected no impacts on investors'sentiment,this thesis refers to the ideas of Purnanandam and Swanminathan(2004),Chemanur and Krishnan(2012)and Yu Honghai et al.(2013)to select paired samples as the benchmark and apply the P/E(price-to-earning)ratio to measure the IPO pricing efficiency of listed companies in the STAR market.The relation test found the upgrade extent of key issues information disclosure negatively affected the IPO P/E ratio,indicating that the bigger upgrade extent of key issues information disclosure produced the lower the IPO P/E ratio,and thus the higher IPO pricing efficiency.(2)Model results showed apparent significance with a series of further robustness tests,such as bootstrap method,excluding the samples without profits at the time of IPO,excluding the samples listed during the COVID-19's outbreak and adding control variables.(3)Further tests found:A.About different effects on the IPO pricing efficiency caused by the key issues information disclosure with a evaluation system of four second-level indicators,innovation,prospect,competition and risk,the further analysis found that the innovation,competition and risk information disclosure upgrade apparently raised the IPO pricing efficiency and that the relation between the prospect disclosure was non-significant to the IPO pricing efficiency with a possible reason of its own less information disclosures and the credibility doubts existed among the investors.B.From the corporate governance,the upgraded key issues information disclosure's optimization on the IPO pricing efficiency was more significant in corporate of higher governance,indicating that the information disclosure by issuers of better corporate governance effectively helpful for investors to estimate issuers'value.From the underwriters'reputation,the promotion on the IPO pricing efficiency by the upgraded key issues information disclosure was more significant among underwriters of higher reputation because they would promise underwriting services to sustain their reputation and thus strengthen the key issues information disclosure's role to optimize the IPO pricing efficiency.C.From the investor sentimental level by the average turnover rate on the first day of IPO,the upgraded key issues information disclosure's optimization on the IPO pricing efficiency was more significant among investors of higher sentimental level.Three,about the interactions between the SSE's review inquiry,the STAR market's key issues information disclosure and the IPO pricing efficiency,main conclusions were:(1)the IPO pricing efficiency was significantly upgraded by the SSE's review inquiry which provided information increment necessary to investors in the new stock pricing,and showed its governance function as well.In the test following the mediation models(Wen Zhonglin et al.2004),the STAR market key issues information disclosure level played a partial mediating effect between the review inquiry and the IPO pricing efficiency.In other words,the review inquiry optimized the IPO pricing efficiency through improving the key issues information disclosure by issuers before IPO in a certain extent.The inquiry itself was not only informative but also contributed to the upgrade of the key issues information disclosure in issuers'prospectus.The inquiry functioned to govern,it aroused the issuers'attentions to questions raised out in the review inquiry and supervise issuers to lift IPO pricing efficiency with improving and adding the key issues information disclosure,and lowering the information asymmetry of the capital market.(2)About the SSE's review inquiry intensity upon issuers to apply registration,the robustness tests drew conclusions basically unchanged either by measuring the question number of first-round inquiry,the rounds of inquiry and the totality of inquiry question or by replacing the IPO pricing efficiency with the PB(price/book value ratio)of the issuers'IPO.(3)The review inquiry enhanced the short-term return rate,but it was not significantly related to the mid-term or long-term return rate.Without perfect follow-up supporting supervisions,the review inquiry couldn't continuously supervise issuers after their IPO.Besides,the review inquiry restrained the stock price synchronicity after issuer's IPO,integrating much more information into the stock price,which was consistent with the regulatory goals of the SSE.The review inquiry also lowered the crash risk after issuers'IPO,indicating its function to reduce the asymmetric information and ease future crash risk.Combined with the current situation of the STAR market's key issues information disclosure and the background of the STAR market registration reform and its current review inquiry system,some policy suggestions could be raised out from the above empirical research conclusions:(1)The SSE should improve the review inquiry and related supporting systems and expand the scope of review inquiry supervision from four aspects:A.to ensure the supervision timeliness by optimizing the supervision process of review inquiry,shortening the time interval between finding and handling problems;B.to strengthen the pertinence of review inquiry with questions of focus and depth;C.to fully play the review inquiry's regulation for corporate governance as non-punitive supervision with a expanded scope to inquiry;D.to increase the professional skills training of the review inquiry staff in the stock exchange,with establishing and maintaining regulators'independence with their own professional ethic code and feedback supervision mechanism.(2)The key issues information disclosure should be standardized with increasing the intensity of punishment for the illegal disclosure.Specifically,A.to standardize the content and form with respective corresponding criteria;B.to emphasize the effectiveness and timeliness with a concise and understandable ways to disclose in semiyearly or yearly reports;C.to intensify the crackdown on illegal disclosures with raising the cost of violations and investigating to publish related persons'civil,administrative and criminal responsibilities for their fake disclosures according to laws.(3)The registration reform should be deepened through promoting the IPO participants'responsibility return from three aspects:A.the guidance for investors in value investing and the cultivation of rational investors;B.the full play of underwriters'supervision and governance upon issuers by lifting the upper limit of underwriters'follow-up investment through the incentive and punishment of reputation;C.the transform of government functions,focusing on creating the good institutional environment and providing the effective legal protection.(4)The mechanism should be improved to govern the STAR market with a dual ownership structure,increasing the ability to supervise and restrict the key issues information disclosure.Actually,A.to directly question the details about the corporate governance;B.to differently treat the exercise of special voting rights in the STAR market of a dual ownership structure by review inquiry;C.to highly improve the level of corporate governance and key issues information disclosure by setting up a strategic development committee in the corporate board and appointing a full-time director responsible for the key issues information disclosure in the audit committee.Compared with similar literature research at home and abroad,the innovation was mainly reflected in the three aspects:Firstly,the STAR-market key issues information disclosure was presented as a concept to supplement the theoretical research on the STAR market information disclosure system.By comparisons between No.1:Standards of the Contents and Forms of Public Listed Companies-Prospectus(Revised in 2015)and No.41:Standards of the Contents and Forms of Public Listed Companies-Prospectus for STAR Market Companies,the differentiated requirements for the issuers'information disclosure were reflected in four types of disclosure in innovation,prospect,competition and risk,which were categorized into one unity,the STAR-market key issues information with its assessment index system to quantize the key issues information disclosure level.The theoretical enrichment were made in the STAR-market key issues information disclosure research by further studies on the relation between the review inquiry and the key issues information disclosure,and as well the relation between the key issues information disclosure and the IPO pricing efficiency.Secondly,the influencing factors of the STAR market key issues information disclosure were studied from two feature dimensions,the form and content of the SSE's review inquiry,finding the SSE's review inquiry positively improved the key issues information disclosure in the STAR market issuers'prospectus.For the SSE's supervision front-line,the literature was added to researches about the influencing factors of the STAR market key issues information disclosure level.And also the evidence supports were provided in testing the positive role of the SSE's review inquiry and the necessity to expand the SSE's supervision.Thirdly,the influencing factors on the IPO pricing efficiency were investigated from the perspective of the SSE's review inquiry,verifying the inquiry's functions of information increment and governance,testing the part mediating effect between the key issues information disclosure and the IPO pricing efficiency,expanding the research scope of China's internal review inquiry supervision and enriching studies on the influencing factors on the IPO pricing efficiency in China's stock exchange market. |
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