The Empirical Studies Of The Information Certification Function Of The Investment Bank Under The Sponsorship In China

The sponsorship is applied in security market by China securities regulatory commission since 2004.It is an important measure which will step up the marketing of the offering and trading of the stocks in our country. It will also strengthen the status and function of and the reputation mechanism of the investment bank. Therefore, there will be the marked relation between the good reputation of investment bank, the high quality and lower IPO under pricing rate of the issuer.This thesis will empirically study the information certification function of the investment bank in China by testing the relation between reputation of investment bank and IPO under pricing rate of the issuer. It found that reputation of investment bank in China has a bit influence on IPO under pricing rate of the issuer, but it is not evident. The information certification function of the investment bank in China was not put into effect. Eventually, it explained why this function was not existed by a typical example. So, we should step up the marketing reform of IPO and build the reputation mechanism of the investment bank. It will put the information certification function into effect and make the capital market efficient.