Research On Relationship Between Auditor Reputation And IPO Premium Rate In Our Country

In recent years, With deepening of Stock Market reform, IPO pricing has adopt the implementation of inquiry system.The reform of non-tradable shares in China have been basically completed.So under the inquiry system, whether the auditor reputation has a relationship with enterprise IPO premium rate?Since the actual'60 s, foreign scholars began to analysis the effect of auditor reputation for IPO premium. Through empirical study, Close relationship was found between auditor reputation and IPO premium rate, the auditor reputation and IPO premium rate are negatively related, and through a significant test.Since the beginning of the opening up policy, China's stock market has evolved rapidly, it's influence and status is rising. Therefore, There is likely to be an increased focus on IPO premium problem among Chinese scholars. But in China,under the emerging stock market, there exist relationship between the high premium rate and auditor reputation? Weather its consistent with he western developed countries?In theory, the high reputation of the auditor Provide high quality Audit service, under the inquiry system, the IPO pricing in listed issuing companies is closer to the real price,and investors can get more recognition,instead of high reputation auditor audit companies issue pricing is more vulnerable to suppress,therefore the IPO first-day premium rate will be higher, hat is to say, high reputation of the auditor, to a certain extent,reduce the rate of IPO first-day premiums.In this article, the author has chosen on June 6,2006-December 2012 IPO of 1076 companies as research samples, empirical research on the relationship between the auditor reputation and IPO premium rate.And respectively by the auditor, audit fees, audit enterprise offering value three aspects to measure the auditor reputation, through the comparison and analysis, descriptive statistics and multivariate linear regression analysis and other methods, research the relationship between the auditor reputation and IPO premium rate.Finally found that no matter what kind of method to measure the auditor reputation,it can reduce enterprise IPO premium rate to a certain extent.