The Relationship Between "Soft Information" Of IPO And Location Of Distribution Enterprise

IPO "sotf i”nformation refers to non-standard and subjective informationduring the IPO process. With the rapid development of Chinese securitiesmarket，especially the primary market, the Commission for IPO informationdisclosure become more and more seirous. The Commission released IPOinformation disclosure about the Main Board and GEM in2006and2009.Prospectus as the key means of information disclosure, contains a lot ofinformation，part of which is "sotf information". Based on imbalance inregional development, the location in which the issue of business operatingenvironment faces uncertainty vaires. Therefore, the question is whether thelocation affects IPO "sotf information"? The answer to this question will help usto study the measure of IPO “sotf information”，and more importantly, todetermine the relationship between IPO "sotf information" and the location oflisted companies. The research may improve the effectiveness of policies in IPOmarket.Based in GEM listed companies duirng2009-2011，the paper make use of"sotf informati"on-location as the analysis rfamework. Based on the IPOprospectus disclosure content and format standards, the paper make use of"fuzzy information ratio method" in Arnold, Fishe and North (2010) to measure"sotf informati"on in IPO prospectus. We further investigates relation betweenIPO “sotf information" and firms’ location. The paper show that the lesslocationbusiness environment uncertainty, the less “sotf information” in the prospectus.According to the area in the Midwest enterpirse location business environmentto the influence degree of the IPO "sotf information" is much higher than thecoastal areas.According to the research conclusion，we put forward such policysuggestions: the first is to perfect the information disclosure in the IPOprospectus; the second is to improve the operating environment of the Midwest.