The Research On The Construction Of Evaluating Indicater System Of Sponsor Quality In China

The stock issuance system has gone through Administrative examination and approval system, Approval system, and it being changed to Registered system now. As the stock issuance system changes, the government give more rights and responsibility to securities companies. The Sponsor system implemented since 2004, claiming that the issuer applies for IPO needs to hire sponsor. However, there has been many problems, the phenomenon like low quality of sponsoring, the sponsor collusion with issuer for interest etc. Therefore, we research on evaluating for sponsor quality in China to help improve the sponsor quality. Therefore, this article considered that enhance the sponsor quality should be two-pronged approach: government’s supervision and the sponsor itself. However, the construction of Quality Evaluation System on sponsorship really has a strong practical significance. On one hand, it can strengthen government’s supervision on sponsors. On the other hand, an enhanced reputation of sponsors will has positive impact on its business. So we think that improve the evaluation of sponsor quality can effectively improve sponsor quality.Firstly, we sort out related to sponsor quality from improving the quality of sponsor, perfecting the sponsor system, evaluating for sponor quality and evaluation of comprehensive performance four aspects. And we introduced the theory of sponsor system and the theory of performance. Secondly, we construct evaluation indicators from due diligence of recommending, continuous supervision, sponsor’s operational capacity and the situation sponsor’s credit this five aspects. It includes fifteen specific indicators in total. And we use AHP as the comprehensive evaluation method to determine the weight of index, it includes the determination of hierarchy, construction of judgment matrix, calculation of importance ranking, and conformance inspection. Thirdly, we analyze the sponsor quality of two sponsors. We analyze the calculation results of indicators and compare the sponsor quality of these two sponsors. And we proposed the measures to guarantee the implementation. We propose policy recommendations in many ways. Specific recommendations include: sponsor and the sponsor representative should have unified responsibilities, the responsibilities of sponsor and agency should be clearly, the improvement sponsor quality disclosure regulations. Finally, we summarized the contents and conclusions of the study on evaluating sponsor quality in China. And we also analyze the research’s shortcomings and possible future research directions. Improve the evaluation of sponsor quality could effectively fulfill the sponsor’s duties and promote the development of the securities market.The innovation of this paper is that we creatively introduce quantitative indicators to measure sponsor quality. Combined with the existing literature and theory,this paper constructed the Quality Evaluation System on sponsorship, which includes quantitative and qualitative indicators. Based on this, sponsor quality was evaluated in this paper.In order to make the evaluation process more scientific and objective,combined with the Quality Evaluation System on sponsorship we have constructed, this paper use AHP to define the weight of indicators.