Chinese Underwriter Reputation And IPO Long-term Weak Correlation Analysis

American scholar, Professor Ritter was first proposed in the1990s phenomenon oflong-term weakness IPO, IPO since then has been a long-term phenomenon weak financialresearch hot. Factors affecting the long-term weakness has many IPO underwriter reputationis one very important factor. Based on the theory of information asymmetry between investorsand listed companies there is serious information asymmetry. Investors and underwriters to belisted as a connecting bridge for companies eliminate information asymmetry has a veryimportant role.Underwriter reputation is very important intangible asset, is outside the underwriters anoverall rating. Very high reputation underwriters underwriting stock when its reputation iscertainly dutifully maintained for listed companies to disclose detailed information, pricingfor the stock will be very reasonable. Therefore, the phenomenon of long-term weakness verygood reputation underwriters are underwriting the stock will not significantly positivecorrelation between the IPO underwriter reputation and long-term weakness. However, thisrelationship between China and the IPO underwriter reputation among long-term weakness isnot obvious, mainly because of China’s securities market is not standardized, stock issuancesystem is not perfect, relevant laws and regulations and other factors caused unreasonable.