Growing Company Ipo Signaling Mechanism

With The development of Chinese "innovation oriented" economy, the requirement of corporate financing activity and other financial service will be continuous and diversify. There is a signal states that the increasing strong demand of different investors will influence the investing demand to become diversity day by day. IT is a long-Term Task to build up a multi-Tier capital market, in particular, the key component is to boost the schedule to build up a Growth Enterprise market, so as To serve as a creative, and highly growing company's financing department to provide a dynamic retreat channel. To build up a related Trading system, along with information disclosure supervisor system has been the most important mission for Chinese capital market.The paper Try To analysis the signal system performance between enterprise financing advisor and outer investors, basing on The Two aspects of Game Theory and Design of contract, in order To exploit a new perspective on the understanding of capital market information disclosure system and incentive function.First, the paper builds up a signaling game to analysis the asymmetric problem between financial advisor and outer investors. The signal in model is the holding share percentage of financial advisor after the invested company's IPO. The paper found That under some strict assumptions about The information structure and moving sequences of The model, There will be an optimal holding percentage for a financial advisor, which can be used by outer investors To Tell "good " and "bad "companies, also with maximization of social welfare.Then the paper focuses on the relationship between ability and reputation of financial advisor. The conclusion indicates that reputation mechanism should be established in China's stock market.In The end,The paper uses its model in To The application of explain China's venture capital invest industry. To introduce growth enterprise market and forming a market system with the stock market as the mainstay, coexistent in harmony with other forms of securities market in China is not a wise choice under current conditions. There are still exist many problems, such as severe stock "complications", malformed stock market operation, weaken function of stock financing and resource allocation, severe stock market speculative atmosphere, investors especially medium and small shareholder lose heavily. IT is really a waste of social resource when China's stock market is still information asymmetry, lack of effective complementary measures.