The Influence Of The Background Characteristics Of The GEM Senior Management Team On The IPO Underpricing Rate

IPO is an important way of direct financing for enterprises,which is of great significance to enterprises.However,in the process of IPO,IPO underpricing can be seen everywhere,especially compared with mature foreign capital markets,the domestic IPO underpricing rate is too high.IPO underpricing will lead to capital mismatch in the primary market,and the funds raised by the company are less than the expected amount,which is not conducive to the operation of enterprises.It will also promote the speculative foam in the primary market,increase the information asymmetry,reduce the operating efficiency of the capital market,and is not conducive to the healthy and long-term development of the domestic capital market.In the domestic capital market,there is also an extremely high IPO underpricing phenomenon in the GEM market.According to the analysis of the first batch of 28 listed companies,the IPO underpricing rate of the GEM is 49.43%,which can reach122.74% at the highest.This increases the investment risk of investors,is not conducive to the continuous investment of investors and the resource allocation ability of the GEM,and is not conducive to the development of the GEM.Therefore,it is very important to study the IPO underpricing of the GEM in China.The background characteristics of the company’s senior management team is an information symbol of the company.Investors will make corresponding judgments on the company’s internal value and form their own investment decisions according to the background characteristics of the company’s management team.Therefore,the background characteristics of the company’s management team will have a certain impact on the company’s IPO underpricing rate.When the registration system is about to be fully implemented,this paper focuses on the different roles and roles of government audit departments and financial intermediaries under the approval system and the registration system.After reading a lot of literature,it is found that there is no research on the impact of the characteristics of the executive relationship network on the IPO underpricing rate,so this paper innovatively adds political and financial relevance to the background characteristics of the executive team,Study the impact of these two characteristics on IPO underpricing rate in the transition stage from the approval system to the registration system,so as to pave the way for subsequent research.In addition,the pricing right under the registration system is handed over to investors themselves,so information disclosure is more important.Therefore,this paper combines the traditional background characteristics: age,gender,educational level,professional experience and overseas background,and comprehensively explores the impact of these seven characteristics on IPO underpricing rate,which can provide reference value for investors’ decision-making.This paper also divides enterprises into state-owned enterprises and private enterprises according to the different nature of enterprises,and compares and analyzes the differences of the influence of the background characteristics of the senior management teams of state-owned enterprises and private enterprises on the IPO underpricing rate.In addition,this paper further analyzes the internal mechanism of the impact of financial relevance on the IPO underpricing rate in the background characteristics of the senior management team,and explores whether the issuance costs have an intermediary effect between the financial relevance of the senior management team and the IPO underpricing rate.On the basis of the above theoretical analysis,this paper selects the data of listed companies from 2009 to 2021 for empirical analysis.The empirical results show that in the whole sample and the private enterprise sample,the average age,average educational level and financial relevance of the senior management team are significantly positively correlated with the IPO underpricing rate,while the political relevance of the senior management team is significantly negatively correlated with the IPO underpricing rate;In state-owned enterprises,only the proportion of women in the senior management team is significantly positively correlated with the IPO underpricing rate;The financial relevance of the senior management team has an indirect impact on the IPO underpricing rate through the intermediary variable of issuance cost per share.