An Empirical Study On The Effect Of Employee Equity Incentive On The Company's IPO Time-Consuming

China's securities market began on the establishment of the Shanghai Stock Exchange on December 19,1990.After 28 years of development,China's securities market has become increasingly mature.In the past 28 years,the issuance system of China's securities market has developed from the initial approval system to the current authorization system in the process of rapid development.Specifically,it has developed from the "Quota management stage" and "Quantity management stage" under the approval system to the authorization system.Under the "channel system" and"sponsorship system",the sponsorship system is the current securities issuance mechanism in China.Due to the existence of IPO underpricing and other phenomena,the most critical link in the company's IPO process under the sponsorship system is through the review of the China Securities Regulatory Commission's issuance audit committee,and the pressure on the issuance and listing of securities is relatively small.The information released by the China Securities Regulatory Commission shows that almost every year(except for the IPO suspension year),some companies are unable to pass substantive examination by the issuance audit committee.According to Wind data,from 2004 to 2017,a total of 297 companies' IPO applications were rejected by the issuance audit committee.Since the end of 2016,although the CSRC's issuance and review committee has accelerated the speed of IPO audits and the apparent length of time for listed companies to undergo scrutiny at the China Securities Regulatory Commission,the transition from intermediaries to the company for initial due diligence to the company's IPO application has passed.The review by the Securities and Exchange Commission's issuance audit committee remains a long process.Under this background,some IPO companies implement equity incentives by directly or indirectly granting stocks to company employees to mobilize the enthusiasm of employees,improve the degree of cooperation and execution of employees in the IPO process,thereby shortening the IPO time-consuming and saving time to market.cost.Then,will the IPO company's equity incentives for employees affect the IPO process?Which stage will be affected?How is the impact?The in-depth study of these issues has a high guiding significance for the development of the intermediary institutions in order to improve the securities issuance system in our country,and to guide the IPO companies' listing process.Based on this theoretical and practical background,this paper chooses whether employees' equity incentives will affect the IPO process as a research topic for master's degree thesis from the perspective of employee equity incentives.The research content of this paper is mainly divided into two aspects:Firstly,the employee equity incentive affects the time-consuming impact of the planned reform of the listed company from the joint-stock system to the review by the issuance audit committee.From 2010 to 2016,this article screens out 1,110 listed companies that have access to valid data from the PORC,and will implement the time-sharing of the share-holding system reform to the review by the Securities and Exchange Commission of China Securities Regulatory Commission as an explanatory variable.The proportion of employees holding the company's shares is used as an explanatory variable,and a regression model is used to study whether the percentage of employees' shareholdings has a significant impact on the length of time the company intends to shorten the share-holding system reform to the review by the PORC.Secondly,the study of employees' equity incentives will affect the time-consuming impact of the proposed listed company from receiving the IPO application documents to being reviewed by the PORC.This article has selected 560 listed companies that can obtain valid data from the companies that passed trial from 2010 to 2016,and will explain the timing of the IPO application documents received by the China Securities Regulatory Commission.Using the percentage of shares held by the company's employees before the listing as an explanatory variable,this paper studied whether the latter had a significant influence on the former through a regression model.This article is divided into the following sections:Chapter one,introduction.This chapter mainly introduces the research background of this article,what is the significance of researching the time-consuming of IPO,what methods should be used for research,and what are the innovations of the research.Chapter two,literature review.This chapter mainly systematically reviews the equity incentive literature and IPO time-consuming literature,and appraise the literature.Chapter three,institutional background,theoretical analysis and research hypothesis.Firstly,this chapter introduced China's securities issuance review system,the IPO process,and the current status of China's IPO audit.Then,based on principal-agent theory,resource-reliance theory,and social capital theory,this article conducts theoretical analysis and proposes two basic hypothesis:the strength of employee equity incentives is significantly negatively related to the total IPO time consumed,and it is significantly negatively related to the time of staying in the CSRC.Chapter four,empirical analysis.This article uses the OLS regression method to study the impact of employee equity incentives on IPO consumption.The empirical results show that the employee equity incentives have a significant negative impact on the total IPO time consumption,and have a significant positive impact on the time of staying in the CSRC.Chapter five,conclusions and recommendations.Based on the above assumptions and empirical analysis,draw conclusions and make recommendations.The main contributions of this paper are as follows:Firstly,this article studies the impact of equity incentives on IPO time-consuming from the perspective of employee equity incentives.It provides a new perspective,and enriches the research results of domestic IPO time-consuming factors.;Secondly,this paper uses IPO total time-consuming and the time of staying in the CSRC to measure the IPO time-consuming,study the impact of employee equity incentives on these two time-consuming.