| As a key link in the growth process of a company,IPO(Initial Public Offering)plays a key role in the financing,governance structure and future development of the company.Due to the objective existence of information asymmetry and the reasons for the design of the current IPO system,the underpricing phenomenon on the first day of IPO has existed for a long time in China,especially in the GEM market,which is more serious,and reduces the financing efficiency and the effectiveness of the capital market of GEM enterprises.As an important carrier of information dissemination,the media affects the investment decisions of investors and asset prices,thus affecting the underpricing rate of IPO on the first day of listing.Therefore,media coverage plays an important role in influencing the underpricing of IPO.In the process of information dissemination,media reports can influence investor concern to the company,alleviate the information asymmetry between investors and financiers,and then affect investors' investment decisions and behavior.The underwriter's reputation signaling mechanism can also alleviate the information asymmetry between investors and financiers,and media reports and underwriter reputation can alleviate the information asymmetry and then influence investors' decision-making and behavior.However,how media coverage and underwriter reputation affect IPO pricing,especially how to affect the underpricing of IPO,is the focus of this paper.This paper chooses 720 IPO companies in GEM from 2009 to 2018 as the research object.Based on information mismatch theory,behavioral finance theory,certification intermediary theory and signaling theory,this paper adopts the research methods of combining normative research with empirical research,qualitative research with quantitative research,and studies the impact of IPO underpricing from two dimensions of media reporting and underwriter reputation.Sound analysis.Firstly,based on information asymmetry theory and behavioral finance theory,this paper analyses the impact of media coverage on IPO underpricing.Secondly,from the authentication intermediary theory and signaling theory,empirical analysis of underwriter reputation on the impact of IPO underpricing.Thirdly,it divides the underwriter reputation into high reputation group and low reputation group,and explores the impact of media coverage on the underpricing rate of IPO under different reputation conditions.Finally,the impact of media coverage on IPO underpricing is studied according to the changes of IPO system.Finally,the conclusions are summarized as follows:(1)The more media coverage,the higher the attention of the planned listed companies,the higher the degree of IPO underpricing on the first day of listing.(2)There is a negative correlation between underwriter reputation and underpricing rate of IPO on the first day of GEM listing.(3)In the case of low reputation of underwriters,media reports have a significant impact on IPO underpricing.(4)With the suspension of IPO in 2013 as the boundary,before and after the change of IPO system,the impact of media coverage on IPO underpricing has changed from significant to insignificant,while the impact of underwriter reputation on IPO underpricing has changed from insignificant to significant,relying more on underwriter disclosure of information about the proposed listed companies.Based on the research conclusion and market situation,this paper puts forward the following suggestions.(1)Suggestions to Underwriters should be made to strengthen the effectiveness of underwriter reputation certification and enhance their public opinion management and ability of inquiry and bargaining.(2)Suggestions for individual investors should be made to strengthen rational investment education for investors,actively participate in primary market investment,and pay attention to excess returns brought about by high underpricing.(3)For the proposed listed companies,we should strengthen public opinion management and look for high-reputation underwriters. |
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