THE IMPACT OF INFORMATION DISCLOSURE ON IPO PERFORMANCE-BASED ON AN EMPIRICAL RESEARCH OF CHINESE GEM LISTED COMPANIES
Article Sidebar
Main Article Content
Abstract
This paper aims to improve the performance decline of the GEM after IPO, enhance the capital market system construction, promote the implementation of a registration system, create an internal control information disclosure index system under the big data environment, and boost the delisting system of the securities market. At the same time, this study provides a valuable practical basis for strengthening the securities supervision mechanism, upgrading the effectiveness of the capital market, and promoting the healthy development of the GEM and STAR Market. A regression model was constructed in order to study the correlation between information disclosure and the IPO performance gap and to explore solutions to reduce the IPO performance gap. For this paper, China’s GEM IPOv initial public companies from 2011 to 2015 were selected. The data collected were mainly obtained from the national database by manually sorting out a number of observation samples and annual reports of the listed companies on the Shenzhen Stock Exchange website. Based on the principal-agent theory, earnings management theory, information asymmetry theory, expectation theory and signal transmission theory, the paper provides innovations in research content and perspective, constructs a regression model to study the relationship between information disclosure and the IPO performance gap, and then tests the regulatory effect. The main conclusions are as follows: 1) There is a significant positive correlation between the quality of information disclosure and the differences of IPO performance, which shows that the more authentic and reliable the information disclosures of the listed companies are, the smaller the differences of IPO performance, 2) The reputation of intermediaries plays a positive moderating role in the relationship between information disclosure and the IPO performance gap, 3) The level of government supervision plays a positive moderating role in the relationship between the information disclosure level and the IPO performance gap, and 4) Optimizing IPO resources plays a positive moderating role in the relationship between information disclosure and the IPO performance gap.
Article Details
Chinese Journal of Social Science and Management Editorial Division
The Office of Research and Development, Panyapiwat Institute of Management
85/1 Moo 2, Chaengwattana Rd., Bang Talat, Pakkred, Nonthaburi 11120, Thailand
Tel. 02 855 01048 E-mail: [email protected]
References
Aharony, J., Lee, C. W. & Wong, T. J. (2000). Financial Packaging of IPO Firms in China. Journal of Accounting Research, (38), 103-126.
Aharony, J., Lin, C. J. & Loeb, M. P. (1993). Initial Public Offerings, Accounting Choices, and Earnings Management. Contemporary Accounting Research, 10(1), 61-68.
Ball, R. & Shivakumar, L. (2008). Earnings quality at initial public offerings. Journal of Accounting & Economics, 45(2–3), 324-349.
Benesh, W. J. (2011). Taming the Dragon: The Modernization of the Chinese Equity Markets and its Effects on IPO Underpricing. Contemporary Accounting Research, 13(2), 334-39.
Cai, Y. Z. (2014). IPO effect from managerial shareholding view——the empirical study of listed companies on GEM board. Master’s Thesis, Southwestern University of Finance and Economics. [in Chinese]
Cao, S. X. (2015). Empirical study of relationship between the quality of the listed company information disclosure and the performance of the listed company information disclosure.
Reform of Economic System, (6), 191-196. [in Chinese]
Chen, X. Y. (2010). Empirical research on the relationship between pre-IPO earnings management and post-IPO performance for China firms. The Theory and Practice of Finance and Economics, 31(1), 62-65. [in Chinese]
Du, Z. P. (2016). Research on issues of initial public offerings price regulation of China. Doctoral Dissertation, Jilin University. [in Chinese]
Fang, J. X. & Xiang, X. X. (2009). Exterior supervision, regulation environment and information disclosure quality: Evidence from listed companies in SME board. Securities Market Herald, (11), 58-63. [in Chinese]
Ge, J. S. & Huang, S. Z. (2002). Critical review of Enron event——A thorough analysis of Enron’s accounting and auditing issues. Accounting Research, (2), 3-11. [in Chinese]
Guo, M. & Fu, M. H. (2016). Venture capital, information disclosure quality and corporate performance variability. Communication of Finance and Accounting, (27), 22-26. [in Chinese]
Healy, P. & Palepu, K. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405-440.
Ipino, E. (1997). Signaling IPO quality: Evidence from disclosure and board composition. Ededition Sweet and Maxwell, 6(7), 56-64.
Kumar, P., Langberg, N. & Sivaramakrishnan K. (2016). Voluntary Disclosure with Informed Trading in the IPO Market. Social Science Electronic Publishing, 54(4), 1365-1394.
Li, Y. P. (2009). Why does the operating performance of the Chinese listed companies deviate from the business cycle? Economic Research Journal, (3), 99-109. [in Chinese]
Lin, Y. Z. & Zhang, Y. F. (2007). The relationship between information transparency and operating performance. Accounting Research, (9), 26-34. [in Chinese]
Liu, B. C. (2014). Research on information disclosure of listed Chinese companies in US: A case study of muddy water shorting DGW. Master’s Thesis, Tianjin University. [in Chinese]
Liu, F. C., Mo, J. X. & Ma, R. K. (2017). The impact of TMT overseas background on firm innovation performance. Management Review, 29(7), 135-147. [in Chinese]
Liu, Y. & Lv, C. J. (2015). Research on methods of IPO earnings management: The case of GUIRENNIAO. Nankai Business Review, 18(6), 81-89. [in Chinese]
Lu, L. (2016). A literature review on information disclosure of listed companies. China Management Informationization, 19(23), 121-122. [in Chinese]
Meek, G. K., Ruberts, C. B. & Oray, S. J. (1995). Factors Influencing Voluntary Annual Report Disclosures By U.S., U.K. and Continental European Multinational Corporations. Journal of International Business Studies, 26(3), 555-572.
Mo, J. X. (2016). A study of the impact of top management team overseas background on firm innovation performance. Master’s Thesis, Dalian University of Technology. [in Chinese]
Qi, J. N., Chen, H. L. & Zhang, Y. (2004). Auditor size, brand name, pricing and audit quality: The audit pricing and quality of “Big Four” in Chinese audit market. Auditing Research, (3), 59-65.
[in Chinese]
Qian, P. & Luo, M. (2015). The prediction model of Chinese listed companies’ financial fraud. Accounting Research, (7), 18-25. [in Chinese]
Qiu, P. P. (2013). A study of venture capital’s impact on companies’ operating performance before and after the IPO on GEM. Finance and Accounting Monthly, (6), 34-35. [in Chinese]
Song, F. X. & Li, C. C. (2014). A study of venture capital’s impact on companies’ operating performance changes before and after the IPO on GEM. Finance & Economics, (5), 44-54. [in Chinese]
Wang, X. Y. (2014). Study on accounting information disclosure of US-listed China-concept stocks: Take Longtop as example. Finance and Accounting for International Commerce, (6), 65-68.
[in Chinese]
Wu, W., Wu, C. & Rui, O. M. (2012). Ownership and the Value of Political Connections: Evidence from China. European Financial Management, 18(4), 695-729.
Xu, L. (2006). Development of investor protection and IPO long-term performance: An empirical study based on law and finance. Nankai Business Review, 9(2), 96-101. [in Chinese]
Zhang, C. & Lv, W. (2009). Information environment, financing constraints and cash dividend. Journal of Financial Research, (7), 81-94. [in Chinese]
Zhang, Z. X. & Zhu, W. H. (2007). The empirical study on disclosure quality of listed companies in China. Nankai Economic Studies, (1), 45-59. [in Chinese]
Zhou, X. H. & Wu, H. L. (2010). An empirical study on performance change in initial public offerings of listed companies with middle and small capital stocks. Journal of Technical Economics &
Management, (6), 19-22. [in Chinese]
Zhu, H. Q., Zhang, M. X. & Duan, K. (2016). Research on the IPO performance effect of listed companies: A literature review. Times Finance, (12), 333-335. [in Chinese]