Research On The Relationship Between The Reputation Of Intermediary Organizations And The Long Term Performance Of IPO

The development of capital markets can promote a country’s economic growth, the establishment of the GEM is to further improve the multi-level capital market,However,China GEM market since October 30, 2009 opening, "performance face" phenomenon one after another,While some companies "face" is forced, but "performance face" will impact on the market, even in severe losses fell to stakeholders.Compared with other stakeholders, it is more important to protect the interests of investors.How to achieve effective protection of the investor becomes a challenging and an important issue,the company has a listing of intermediaries in the IPO process,including venture capital firms, underwriters and sponsors, and accounting firms, their own business interests and the intermediary role played an important impact on the long-term results after our IPO.Intermediaries involved in the IPO process,have they played their due diligence obligation,played third-party certification role,or participated effectively in the supervision and management of enterprises,in order to alleviate the information asymmetry between the issuer and outside investors, so the agency assisted companies listed become the focus of our attention.In this paper, based on the special status of intermediary agencies in assisting the company’s IPO process to study their impact on the long-term performance of the company after IPO,In 2009- 2011 in our GEM listed as the research object, firstly, to define and select measurement methods of each agency’s reputation,and selecting the operating performance and market performance as a long-term performance measure,then calculating the data of sample companies after the listing of three years(2010-2014),and examining the single intermediary institutions and intermediaries joint whether have a significant impact on long-term results after the IPO.Therefore, this article established performance model,including the operating performance of listed companies,the market performance after the IPO,to examine if there is a positive correlation between performance and a single agency’s reputation or the reputation of the joint agency.Through the above analysis,we get the final results of this paper,as follows:the participation of high reputation venture capital has significantly improved the performance of the enterprise;High reputation accounting firms with IPO after long-term operating performance does not assume a significant positive correlation,with the post-IPO long-term market performance showed a significant positive correlation; High reputation sponsor underwriters and long-term results did not show a significant relationship.In the agency’s reputation joint hypothesis, the combination of high reputation of venture capital and high reputation of the accounting firm formed to improve corporate performance;The accounting firm of high reputation of the sponsor and underwriter of high reputation did not show a significant correlation with performance;The high reputation of the sponsor and underwriter of high reputation and IPO venture capital firms did not show a significant positive correlation with performance. Thus, we draw a conclusion that in our country, accounting firms, sponsor underwriting business are not fully played the third party certification agency and supervision function,capital market supervision department for the intermediary institutions of legal supervision is not strict,the reputation system is not perfect.Listed companies pay attention to short-term success listing and financing to encourage intermediary business operation of the suspect,lead to accounting firm and sponsor underwriters pay attention to short-term interests, they dare to find opportunities to take the risk and adventure the benefits are greater than the future because of reputational damage caused by the loss, intermediaries independence identity has not been reflected.