A Case Study Of Pingan's Shredded Reputation

According to Reputation Theory,and basing on the current situation of Chinese IPO market,this essay builds a system to value Pingan's reputation by using factor analysis.The system finds out that IPO's long-term performance in securities market,IPO's quality and Pingan's market share have the most impact on its reputation,and the reputation level dropped dramatically after being punished by the regulator.,Pingan failed to perform its duty diligently and devotedly,loosed its censorship on IPO's quality to pursuit higher IPO number,failed to perform its responsibility in the following tutoring period.These are the three main reasons that caused damage to Pingan's reputation.Pingan adopted some measures to restore its shredded reputation,including setting an independent compensation fund and taking internal reforms.Considering the reasons mentioned above,the last measure is more effective.Concluded,underwriters should fully realize the consequences brought by shredded reputation,and should avoid behaviors that could cause damage to their reputation.At last,some suggestions are given to underwriters,IPOs under preparation and investors.