A Study On The Relationship Between The Structure Of The Board Of Directors And The Underpricing Of IPO

IPO underpricing is a phenomenon that the issuing price is lower than the first day closing price on the first day of IPO,and it exists widely in the stock market of many countries.IPO underpricing will lead to imbalance in the allocation of resources in the stock market and the low efficiency of the stock market,which leads to the vicious competition of securities firms in order to obtain the qualification of underwriting.In order to solve such problems,domestic and foreign scholars have conducted in-depth discussions on the factors influencing IPO underpricing.Based on this purpose,this paper studies the relationship between board structure and IPO underpricing.This paper first expounds the background and significance of the research,reviews the relevant literature on IPO Underpricing and the structure of the board of directors,and the research methods and innovations of this paper.Then it introduces the theoretical analysis of the causes of IPO underpricing,and then studies the connotation of the structure of the board of directors and the board of directors and the operation of the board system.Finally,we make an empirical research on board structure and IPO underpricing,and draw relevant conclusions.This paper takes China's GEM listed companies as research samples.Since the Shenzhen Stock Exchange and June 13,2014 issued the "notice about the first day trading mechanism of the first public offering of the first public issue",the trading mechanism of the first day of the market was adjusted,so the sample was divided into two parts before and after the adjustment.This paper puts forward five hypotheses,which are the four hypotheses before the adjustment of the mechanism:the size of the board of directors of IPO company is negatively related to the IPO underpricing rate;the chairman and the general manager two are in favor of reducing the rate of IPO underpricing;the proportion of the independent directors in the general board is negatively related to the IPO underpricing;the shareholding ratio of the directors of the directors is negative to the IPO underpricing.Off.And a modified hypothesis:the structure of board of directors of IPO company has nothing to do with IPO underpricing.The regression analysis shows that before the mechanism is adjusted,the larger the board of directors,the lower the IPO underpricing rate;the separation of the chairman and the general manager two position is more beneficial to the improvement of the company's governance and the reduction of the IPO underpricing;the independent director has not passed the significant test,which shows the independent director in China.The role of the board of directors is not obvious;the greater the share ratio of the directors,the members of the board are encouraged,the better the quality of the company is,the lower the IPO underpricing rate is.After adjusting the mechanism,all variables did not pass the significance test.