Empirical Study On The Effect Of Customer Concentration On IPO Underpricing And Long-term Performance

The development of the enterprise can’t depart from the support of funds, the IPO is one of the important channels of funding sources.A public stock offering not only can promote the flow of the stock, to raise more capital, financing for the enterprise to provide more opportunities, but also can increase the value of the enterprise.In addition, companies can be listed to adjust the proportion of equity capital and debt capital, so as to effectively improve the capital structure of the enterprise. In the process of IPO, show many confusing, the vision that violates the efficient market hypothesis. Among them, the IPO underpricing phenomenon is one of the most intense debate. It refers to the initial public offering price of the stock is lower than listed on the first day after the closing price of the phenomenon. Previous research on IPO underpricing phenomenon mainly focuses on the reasons behind the IPO discount,including investors, underwriters,distribution system, etc.The particularity of China’s transitional period, determines the relational transaction between suppliers and customers become the natural choice, the customer plays an vital role in the development of the company. This paper studies the non-financial stakeholders--clients on IPO underpricing and post-IPO long-term performance. At the same time, considering the differences of China’s marketization degree and the nature of property right, further verify the customer’s influence on IPO discount. The research results show that: first, the customer concentration increase will reduce the level of IPO discount rate, further research shows that the state-owned companies will weaken the negative relationship, and high degree of marketization can weaken the negative relationship. Secondly, after the IPO long-term performance will be improved as the customer concentration increased before they are falling.To sum up, for the IPO companies listed on the early should make full use of the role of big clients, and correct positioning market value, after must pay attention to the relations with big clients, balance positive effects and the possible risks due to the big customer.