Relational Contract Between Sponsors And Certified Accounting Firms And IPO Quality

IPO sponsor system implements since February 1, 2004. the role of the sponsor in the stock market become more important. "Interim Measures on Securities Issuance and Listing Sponsor System" December 29, 2003 issued by the CSRC clear that sponsor shall fulfill Recommended issuers listed issuer is responsible for the primary issuance of securities underwriting, and specify the SFC sponsor representative and professional communication, so the sponsor of the IPO companies get the opportunity to have a decisive influence. Issuance examination committee issued an audit as the audit agency last pass, the issuer IPO success have a decisive influence, and discretion as well as members of their own interests issuance examination committee members will likely lead to the abuse of power, in order from the sponsor issuers get more earnings release, issuance examination committee members were motivated to proprietary investment, the two sides reached a relational contract, the contract could have an impact on the quality of the issuer's IPO, what impact. This paper attempts to establish a relational contract(hereinafter referred to as relational contract) from the sponsor and the perspective of the accounting firm of its impact on the availability of IPO opportunity, and to explore the impact of relational contract under which property rights over the nature of the IPO will more; further studies at whether there is a relationship between different contract conditions will be succeeded enterprises what are the differences before and after the IPO performance, what relationships exist between the contract and the quality of IPO. Combining institutional background research for the above viewpoints theoretical analysis, selected from January 2004 to December 2012 on the Main Board and GEM IPO application on a sample model of the article assumes that empirical.The empirical results relational contract opportunities with the IPO showed relational contract and IPO opportunities significant positive correlation, indicating the probability of the existence of the contractual relationship between the issuer IPO apply through the issuance examination committee than relational contract that does not exist IPO application by the issuer issuance examination committee of the probability of large according to the nature of the property sub-sample test, test results show that the nature of state-owned property, the relational contract for IPO requested to play a greater role, and I would go on more. In addition, this article assumes 2 studies the relationship between relational contract with the IPO quality between the empirical results show that relational contract with the IPO quality significantly negative correlation does not exist when comparing over after the existence of relational contract when that is over will be companies listed performance relational contract enterprises poor, IPO quality is relatively low. It illustrates the relationship of the contract to some extent undermined the independence of the agency, resulting in the IPO market and the mismatch of resources.This study has some significance in innovation and quality IPO research, enrich the influence of sponsors and accounting firm IPO.