A Research About Financial Information Quality、IPO Effect And Their Relationship Under The New Philosophy Of Regulation

With the continuous development of China’s market economy, initial public offering(IPO) the company has become an important way to raise a lot of money, further developmentand expansion; purchase starting stock has become institutional investors and the generalpublic to invest, an important channel to increase wealth. However, in recent years a largenumber of studies have shown that after the first public company listed on the phenomenon ofwidespread decline in performance (the so-called IPO effect). Enterprises IPO wide-ranging,high-impact, related to the vital interests of many investors, but also by the media and thepublic attention. Although the causes of this phenomenon has not yet conclusive, but manyscholars believe that the financial information disclosed by the company to apply this IPOquality is not high (eg: earnings management) related. In order to improve the quality offinancial information disclosed in the company’s IPO application, the promotion of"accounting regulatory risks Tip No.4IPO process all market participants fulfill their duties,October16,2012, China Securities Regulatory Commission issued a-IPO audit "notice.Notify asked all units to fully grasp the contents of the accounting regulatory risk prompts,when to be approved, not approved or terminate an audit of the company’s IPO audit businesschecks should be highly concerned about the risk warning on related issues, and CPA urge totake effective measures to improve the competence, providing a more realistic and effectivebasis for investment decisions of investors, so as to promote the capital market more orderly,stable and healthy development.With previous results apply only to the company’s IPO raised the number of differentrequirements and other indicators, risk advisory document on the4th mention a lot morestringent accounting and workable regulatory ideas, for example, pay attention to the annualfinancial statements of the reporting period for each project cross-check the relationshipbetween the linkage of financial information and confirm each and non-financial information;should focus on whether the abnormal growth of Certified Public Accountants and unusualtransactions carried out appropriate audit procedures so full earnings of the issuer during thereporting period exists for. Are these new regulatory policy can improve the quality offinancial information disclosed by the Company IPO, thereby reducing the IPO effect to acertain extent it? Although the initial implementation of the policy is difficult to obtain valid data on the effectiveness of the policy can be tested, but the relationship between thehistorical data and the quality of financial information IPO effect can also provide valuablereference for predicting the effectiveness of policies under the new regulatory ideas for basicresearch. In this paper, according to the new ideas and the specific requirements of theregulatory text proposed by the4th, extracted six characterize the quality of financialinformation is a key financial indicators to apply starting in2009listed companies as samplesto study the disclosure of financial information during the company’s IPO changes in therelationship between the quality of their performance before and after the IPO between. If thestudy found that the quality of financial information disclosure of the company’s IPO whenthere is a significant negative correlation between the IPO effect, that the lower the quality offinancial information disclosed by the larger IPO IPO effect, and vice versa, then it showsenhanced disclosures when the company’s IPO Financial information quality can reduce theIPO effect, reducing investor losses, expected that the new regulatory policies effectively.