Research On The Impact Of IPO Inquiry Of STAR Market On The Capital Market Information Efficiency

In June 2019,the official opening of the Star Market was an important milestone in the institutional reform of China’s capital market,marking that China’s capital market began to enter the era of registration system with information disclosure as the core.Inquiry is the core link of information disclosure of IPO registration system.Whether IPO inquiry can improve capital market information efficiency is directly related to the effectiveness of capital market registration system reform.From the perspective of investors’ access to information,after the reform of the registration system,the IPO inquiry has had a great impact on the disclosure and transmission of information in the market.In addition to the direct disclosure through the inquiry letters,the IPO inquiry is also closely related to the prospectus and the analysts’ information search activities.At present,many scholars have studied the impact of inquiry,but most of them are directly from the inquiry letters themselves,and from the perspective of information transmission or mechanism,the literature on the impact of IPO inquiry on the capital market information efficiency is still relatively scarce.Different from the existing research results,this paper takes the prospectus and the analysts’ information search activities as the two main entry points,takes the IPO inquiry and prospectus in the Star Market as the research objects,uses Text Mining and Analytics to construct the information disclosure quality evaluation system of prospectus,to study the role of IPO inquiry in the process of improving the capital market information efficiency.Specifically,(1)from the perspective of information flow,this paper verifies the information mediating factor role of inquiry.By taking the IPO inquiry and the prospectus of the Star Market as the research objects,this part focuses on whether the incremental information brought by the inquiry can supplement the effective information of the prospectus,penetrate and transmit it to the IPO pricing process,and then improve the capital market information efficiency.(2)from the perspective of causality,this paper verifies the impact of inquiry on information efficiency.By exploring the impact process and mechanism of analysts’ attention on the capital market information efficiency,this part verifies the mediating factor role of IPO inquiry in its influence process,and provides circumstantial evidence for the inquiry to improve the capital market information efficiency.The results show that:(1)There are significant differences in the quality of the prospectus’ information disclosure before and after the inquiry;Inquiry has a positive effect on improving the quality of the prospectus,and this part of the information contains characteristic information that can reduce the stock price synchronicity.That is,inquiry can improve the information quality in the prospectus,penetrate effective information into the stock price,and improve the capital market information efficiency;(2)In the early stage of listed company,analysts focus on market and industry information.When their information mining reaches the industry research level,more company characteristic information will be included.In addition,in the process of analysts’ attention affecting the capitall market information efficiency,IPO inquiry plays a significant mediating factor role.Analysts’ attention will affect the capital market information efficiency by affecting the registration time of listed companies.This paper enriches the research on the relationship between information disclosure and stock price synchronicity,and provides enlightenment for issuers to improve information disclosure,regulators to grasp the inquiry requirements and standards,to carry out targeted investor protection,and to improve market transparency.