A Study On The Pertinence Between Performance Changes Of Listed Companies And Reputation Of Sponsors And Sponsor Representative

The phenomenon that the performance of listed companies fal l rapidly after IPO has plagued the whole stock market.In order to find out the influence factors of this phenomenon,this paper take the reputation of sponsors and sponsor representatives as the point of view.Based on the reputation theory,information a symmetry theory,signal transfer theory and rental theory,this paper select data of 377 companies listed on China's GEM during 2009 and 2011.The result shows that:(1)The reputation of sponsors can explain the changes in the performance of listed companies alone as well as the reputation of sponsor representatives.The reputation of sponsors get the higher confidence level.It is because the fact that sponsors are not only able to know the actual production and operation status of companies,but also can make use of the very social resources to find out the true status and situation of the companies.Although the sponsor representatives also have some personal connections or enterprise resources,it is far more weaker compared with what sponsor organizations own,and the cost is also difficult to afford to any single person.Therefore,the sponsors can form a more objective and in-depth analysis and judgment on the overall situation of the companies.(2)The synergy of double reputation is more effective than any single reputation,and make the single reputation more effective.It is because that the existing laws and regulations are accountable to the sponsor and sponsor representatives for the illegal issuance.The interest and joint relations urge them to supervise each other in the sponsorship activities,and to examine each other,so as to improve the quality of the sponsor projects.So,to a certain extent,the existing design of the system has achieved the original purpose and requirements of the design.This article suggests:(1)To accelerate the introduction of the registration system and the marketization.(2)To increase the punishment for the issue of illegal activities.(3)To reform the selection system for the sponsor representatives.(4)To promote financial reform.(5)To establish information service agencies.(6)To establish a sound sponsor reputation system.