Research On The Relationship Between IPO Underwriting Rate And Investment Bank Competitiveness In China

In the Chinese market of securities issuance and underwriting, the issue of IPO underwriting fee rates receives broad concern from the entire market. After careful consideration of the factors influencing IPO underwriting fee rates, an analyzing framework is constructed of macroeconomic factors, the issuer and issuing characteristics, and the competitiveness of investment banks, which is to explore the formation mechanism of IPO underwriting fee rates. This paper establishes a characterization method of measuring competitiveness of investment banks by two aspects, the strength of investment banks and the relationship between investment banks and issuers, and selects explanatory variables which can provide a more complete presentation of competitiveness of investment banks. Based on the model in this paper, the conclusions show that the competitiveness of investment banks has a significant impact on IPO underwriting fee rates, and simultaneously provides recommendations during the process of selecting partners suited to their own characteristics for different types of investment banks and issuers.