Research On The Influence Of Underwriters’ Reputation On IPO Pricing Of Science And Technology Innovation Board

For a long time,the deviation rate of IPO pricing in the capital markets of various countries has been a focus of attention.Since in most markets,the trading price of new shares in the secondary market will rise significantly after listing,it is often called the IPO discount phenomenon.The inefficiency of the issuance market has led to the fact that investors can often obtain excess returns when investing in new shares,and investors are highly motivated to "play new".This paper first analyzes the main reasons for the deviation of IPO pricing on the STAR Market from the theoretical level,which is mainly summarized into the following three aspects: information asymmetry theory,winner’s curse theory and underwriter theory.Based on the above theories,four hypotheses are put forward: 1.The reputation of the underwriter has a significant negative effect on the deviation rate of IPO pricing.2.The underwriter’s co-investment amount has a significant positive effect on the IPO pricing deviation rate.3.Under the background of underwriter co-investment system,the inhibitory effect of underwriter reputation on IPO pricing deviation rate is reduced.4.Under the background of the new price inquiry regulations on 9.18,the underwriter’s reputation has a stronger inhibitory effect on the IPO pricing deviation rate.In the empirical part,five indicators related to the reputation of underwriters were first studied through principal component analysis: A study was divided into three parts to verify the aforementioned assumptions: the results of the first part showed that the share of underwriters had a significant impact on the deviation rate of IPO pricing on the STAR Market.The negative impact of IPO rating indicators has no significant impact,and the amount of follow-up investment has a significant positive effect on the IPO pricing deviation rate of the Science and Technology Innovation Board.The results of the second part of the study show that the high follow-up investment amount will weaken the effect of the underwriter’s reputation on the IPO pricing deviation rate of the Science and Technology Innovation Board.The third part of the research results shows that the 9.18 new price inquiry rules have enhanced the negative impact of the share of underwriters and the rating of underwriters on the IPO pricing efficiency of the Science and Technology Innovation Board.Based on the above conclusions,this paper puts forward five suggestions for the regulatory authorities to continue to promote the reform of my country’s registration system,improve the existing co-investment system,optimize the rating standards of my country’s securities underwriters,adhere to and improve IPO market-based pricing,and improve post-event supervision measures.Recommendations are made for underwriters to prevent excessive financial embellishment.