Research On The Impact Path Of Foreign Equity Brokerage Firms On IPO Pricing Efficiency

Since the deepening of the opening-door policy,the restrictions of China's securities industry on foreign shareholding ratios have been continuously widened,when the Securities Regulatory Commission announced that China's securities industry's restrictions on foreign shareholding ratios will be lifted until April 2020.Since then,China's securities market will usher in a new chapter of comprehensive opening to the outside world.As an important intermediary in the IPO(Initial Public Offering)market,securities underwriters produce financial information and certify the quality of IPO companies.The liberalization of foreign ownership will directly affect the practice level and supervision of China's securities firms.However,the practice level and supervision of securities firms will affect the degree of information asymmetry in the IPO market,thus causing a differential impact on the operating efficiency of the IPO market.Considering the above situation,the paper intends to start from the perspective of foreign equity participation in China's securities brokers,discussing the impact mechanism and function path of foreign-invested securities firms on IPO pricing efficiency,with a view to providing policy reference for the introduction of foreign capital in China's securities market.First,based on the principal-agent theory and the information asymmetry theory,this article combines innovative domestic and foreign literature,innovatively investing in foreign equity brokers,IPO company earnings management,and IPO pricing efficiency from three aspects: system embedding effect,technology spillover effect,and brokerage reputation mechanism.To discuss the correlation between the two,in order to explore the mechanism and path of foreign equity participation brokerages to affect the efficiency of IPO pricing;secondly,using the 2007-2018 A-share IPO company as a research sample,select the revised Jones model to estimate the maneuverability accrual Profit measurement earnings management,as an explanatory variable,measures the IPO pricing efficiency by the degree of deviation of the IPO price from the first day 's closing price,and as an explanatory variable,uses descriptive statistical analysis,mean difference test,OLS regression analysis,PSM analysis method to test foreign investment The correlation between stockbrokers,IPO company earnings management and IPO pricing efficiency shows that:(1)China 's issuing companies generally have earnings management behaviors before the initial public offering,and foreign equity brokerages can significantly reduce IPO corporate earnings management Degree;(2)IPO pricing of companies underwritten by foreign equity brokers The rate is significantly higher than that of domestic brokerages,and the proportion of foreign ownership of the brokerages has a differential impact on the IPO pricing efficiency of foreign-invested securities brokers;(3)The pre-IPO earnings management behavior of the issuing company will cause the new share issue price to deviate from the intrinsic value of the new share issue company.Affecting the IPO pricing efficiency,further research found that there is a complete intermediary effect between earnings management of foreign equity participation brokers and IPO pricing efficiency,that is,foreign equity participation brokers by inhibiting IPO company earnings management behavior,and then improve IPO pricing efficiency,verified foreign equity participation brokers The specific path that affects the IPO pricing efficiency,this paper controls the self-selection problems and alternative interpretations at the brokerage level.After the implementation of the robust observation,the empirical conclusions are still established;finally,the research conclusions of this paper fill the current research on foreign equity securities firms and IPO market efficiency The blind spot provides a basis for the issuer to select brokers and investors to make investment decisions.From the perspective of promoting the efficiency of IPO pricing,it provides an empirical basis for testing the effectiveness of the policy of liberalizing the restrictions on foreign shareholding in China's securities market.