| As one of the important method of capital raising,the equity financing have being developed rapidly.One of the most difficult problem exist in stock market is the puzzle of IPO underpricing.Throughout the long term researches,researchers have got the main standpoint and theories,which were supported by evidence from local and foreign countries.Besides the equity market,the bond market in China has been emerged rapidly which has caused the incredible growth of credit rating industry.Credit rating plays a key role in the process of the bonds issuance by revealing the risks of both the issuing bond and the issuer.It is the necessary method of risk announcement for investors who benefit on getting information that related to company.Meanwhile,it takes advantages for the achievement of IPO pricing after investors receive the related information.Regarding to what we mentioned above,this thesis discusses the relationship between the credit rating and the IPO underpricing of China.First of all,we talked about the basic conception and the development of credit rating,then we conducted the research of 1,156 companies listed in China.We found that the revision extent in the bookbuilding process is smaller for the companies which got credit rating before they go public than those who don’t,which means the existence of the credit rating can lower the degree of the IPO underpricing in the primary market.We found that there is a positive relationship between the credit rating and the degree of IPO underpricing in the secondary market.Based on the related laws of bonds issuing and IPO in China,we found that the stricter requirement for bond issuer,the signal that credit rating delivered to the secondary market,and the underestimation of the primary market are the reasons.The result of the robustness test is consistent with our hypothesis one.In the end,we proved that the relationship between the different credit ratings and the degree of IPO underpricing is not exist.. |
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