Research On The Impact Of Tax Recharge On IPO Underpricing From The Perspective Of Information Asymmetry

China’s stock market has been in existence for nearly 30 years since its establishment in late 1990.During the period,China’s new share issuance system has transitioned from an auditing system to an approval system,a nd the registration system which is gradually promoted has steadily moved with the direction of marketization.However,the first-day earnings of China’s new shares have remained high in this process,which is significantly higher than other mature capital markets in the world.This IPO underpricing phenomenon has attracted the attention of scholars.IPO tax supplement is also a commonplace in China’s capital market.As we can see from the existing literature in China,most of the early studies are whether the foreign classic theory is applicable to China’s national conditions,or whether it can be applied to explain the high IPO underpricing problem in China.However,due to the special national conditions in China,it is necessary to analyze with the speci fic situation.There are few literatures which have studied the impact of IPO taxation on IPO underpricing from a tax perspective,which is also the research opportunity of this paper.This paper attempts to explore the impact of tax reimbursement on enter prises and IPO underpricing,and its theoretical interpretation from the perspective of information asymmetry.As for the research sample,adopts the new stocks listed in China’s Shanghai and Shenzhen stock markets from January 2014 to December 2018.Based on performance release and performance manipulation theory,information asymmetry theory,etc.,this paper puts forward hypothesis,builds models,conducts multiple regression analysis,and studies IPO.The impact of tax reimbursement on IPO underpricing,post-IPO profitability and IPO financing amount,based on three theories of information asymmetry of signal theory,“winner curse” hypothesis and principal-agent theory,in-depth exploration and analysis of IPO taxation and IPO underpricing Relationship.The research results show that China’s IPO underpricing is high and fluctuating frequently.From the perspective of information asymmetry,the “winner curse” theory and signal theory can explain the relationship between IPO tax and IPO underpricing to a certain extent,but the principal-agent theory is not supported by empirical results.Finally,in view of the problems found in the research process,this paper puts forward relevant suggestions,expecting to reduce the information asymmetry of China’s new stock market,reduce the degree of IPO underpricing in China,and provide some effective reference for enterprises in taxation.