The Comparative Research On The Implementation Effects Of The Sponsor System And The Channel System In China

From American"Enron"event to our"Guangxia"event, those investors suffered serious losses, and then the financial fraud actions of the listed companies begun to attract people's attention, and regulatory authorities began to pay attention to the effects of the intermediary organizations, especially the role played by sponsors to improve the quality of listed companies, restore and enhance the confidence of ordinary investors, reduce the true features of the securities markets, and develop its function of capital resource allocation. At the end of 2003, China Securities Regulatory Commission promulgated"Interim Measures for Sponsor System listing of the securities issuance", and implemented from February 1, 2004, which marks China's entry into the sponsor system stage, and this is another major change in the system in China after the implement of approval system. Sponsor system originated in Britain, popular in Hong Kong and other second board markets, and China became the first country to adopt sponsor system in main board market. The successful experience of sponsor system in second board markets showed that sponsor system had obvious effect in improving the quality of listed companies and protecting the legitimate rights and interests of investors.However, if the sponsor system running successfully in second board markets means that it can be implemented successfully in China's main board market? If the sponsor system can bring effective changes in China's stock market, whether it can improve the quality of listed companies from the source as expected? It is worth exploring. In order to verify the implementation effects of the sponsor system, this paper is an empirical study on the price behavior of IPO which includes IPO under-pricing and IPO long-Run Underperformance for the comparison of the channel system and the sponsor system. Different from the previous research, most domestic scholars research it by qualitative methods from the legal relations changes of the two kinds of system or how to use the successful experience of other second board markets for reference, and there are little quantitative literature methods to verify the implementation effects of sponsor system in China. This paper will select the data of all the initial public offering of the A-share listed companies from January 2002 to February 2006, and use the rate of IPO under-pricing and the three year excess returns to compare the two stages of IPO price behavior. The focus of the study including the average IPO under-pricing rate of the two kinds of system, and comparison of three-year average excess returns, the specific performance of long-term returns and compare their respective factors by multiple linear regression.This paper is an empirical study on performance and influencing factors of the price behavior of IPO of the channel system and the sponsor system. The results show that there are two significant differences between them. Firstly, the under-pricing rate and three-year cumulative abnormal return are lower in the sponsor system than that in the channel system. Secondly, the influencing factors of the price behavior in the channel system are external factors such as the market and the issue method, but that in the sponsor system are influenced more by external factors such as the firm size and the financial situation. These phenomena indicate that the sponsor system can improve the IPO issuing efficiency, insure the quality of the issuers and make the investors more rational.