3.26财务金融系系列讲座之113期

时间：2013年3月26日（周二）13:30　　　　　　　　　

地点：史带楼303室

主持人：Dr. Gong Zhan　（战功 博士）

Department of Finance, School of Management, Fudan University　

主题：Going Public under a New Underwriting Regulation: Underwriter Reputation Effect

演讲者： 　Prof. Kemin Wang（王克敏 教授）

Department of Finance, School of Management, Fudan University

摘要: This paper investigates the underwriter reputation effects under a new underwriting regulation of China: two individuals, known as sponsors, are leaved to undertake the underwriting work and bear relevant responsibilities which were taken by the investment bankers. We find that, the more experienced the sponsors are, the better the issuers perform, and the less earnings manipulation these issuers engage in. Further research shows that, the underwriter reputation effect on issuers’ performance and earnings management is weakened after the regulation. Additionally, compare to underwriter reputation, the sponsor experience explains the IPO underpricing better. These evidences give support to the deep pocket theory (DeAngelo [1981]) and suggest that, compare to the underwriters, sponsors involve less in building their reputation, so they are more opportunistic, such as tolerating or even assisting with issuers’ earnings management after the regulation when they are entitled to do underwriting. Our findings indicate that, a stringent regulation can’t always achieve its initial purpose, and even introduce extra costs. Once the underwriting mechanism is destroyed by the regulation, the role of reputation will be impaired, and in turn, the equity market order is broken.

财务金融系

2013-3-22