A Study On The Impact Of IPO Failure Experience On Stock Price Crashrisk

Stock market investment returns are usually asymmetrical,that is,market fluctuations in the case of more declines than rises,and the collapse of the share price of listed companies will also bring serious consequences,which will damage the interests of shareholders,hit the confidence of investors,increase the instability of the stock market,but also may be transmitted to the real economy,affecting the efficiency of resource allocation,which is not conducive to the stability and health of the national economy development.With the increasing development of China’s stock market,a number of listed companies has gradually increased,and there is no lack of some companies applying with “illness”,which will aggravate the crash risk of share price.In response to this situation,when the sponsor system was implemented in 2004,there were companies that failed in IPO for the first time,and some of the companies continued to apply for IPO after making adjustments for the reasons of the first failure.According to statistics,there were 220 companies that had failed in IPO and finally returned to IPO successfully from 2004 to 2018.This thesis takes companies that launched IPO applications and successfully listed from 2004 to 2018 as the research object,focusing on listed companies with IPO failure experience among them,and investigates the following questions: First,the impact of IPO failure experience on stock price crash risk;Second,whether IPO failure experience affects stock price crash risk by affecting information transparency;Third,the number of IPO failures,IPO failure Third,whether the number of IPO failures,reasons for IPO failures have moderating effects on the impact of IPO failure experience and stock price crash risk;Fourth,how the impact of IPO failure experience on stock price crash risk changes under different groupings such as the nature of corporate ownership and listing auditors.This paper conducts theoretical analysis based on information asymmetry theory and other theories,combined with econometric modeling,to explore the impact of IPO failure experience on the risk of stock price collapse of listed companies and the mechanism of its effect,and draws the following main conclusions.First,IPO failure experience significantly reduces the risk of stock price crash risk of listed companies.Secondly,after introducing the mediating variable information transparency,analyst attention is used as a measure of information transparency to reveal the influence mechanism of IPO failure experience on stock price collapse risk.That means IPO failure experience reduces stock price crash risk by increasing information transparency of listed companies.Third,the moderating effect study finds that the negative correlation between IPO failure experience and stock price crash risk of listed companies is more significant when the number of IPO failures is higher;the inhibitory effect of IPO failure experience on stock price crash risk of listed companies is more obvious when the reason for IPO failure is active withdrawal of application.Fourth,the heterogeneity test finds that the inhibitory effect of IPO failure experience on stock price crash risk is more pronounced among state-owned enterprises,and the negative correlation between IPO failure experience and stock price crash risk is also significant among companies whose IPO audit is conducted by the top four audit firms.Based on the findings of the study,this paper makes relevant suggestions for regulators and corporate development.