The Influencing Factors Of The Chinese IPO Audit Result

Since the implementation of the approval system in 2001, the IPO companies have to face the final audit of China Securities Regulatory Commission. This is a The brutal test for all companies. From the statistical data of the Securities Regulatory Commission, there were part of the enterprises which could not pass the text of the Securities Regulatory Commission in recent years. In 2013, The Securities Regulatory Commission suspended the IPO applys, because financial performance of the companies turned bad after IPO and the market quotation was not as good as expect.During the period of pause, Securities Regulatory Commission strengthen the audit of the companies’ financial reports.Because of this,it turned more difficult for the IPO companies to get the permition to go public.There were so many companies queued up for passing the test that it cuaseed a big jam of companies.In this situation,what is the actual standard of Securities Regulatory Commission to permint companies to go public,is a very vauluable question for us to research.In this paper, we do the research basising on theories of different schools.We use the data of 1112 companies IPO reports from 2010 to 2014 to do the empirical test.We use the logit model to do the research and get the conclusion of what factors affect the result of IPO examination actually.The conclusion can provide useful suggestions for companies, underwriters and Securities Regulatory Commission.the empirical research of this paper indicate that :(1)The factors about companies’ stable operation affect the examination results obviously.These factors include:asset, independence, compliance, position in the industry, investment direction.(2) The political relationship of the companies course large impact on the results of issue audit. state-owned enterprises and private enterprises whose executives have political background have higher probability to pass the issuance examination and verification;(3) The main underwriting sponsor’s business reputation’s effects on the issue of the audit results is relatively large, the the underwriters rank the forefront of the industry have higher probility to pass the issuance examination committee audit.(4) Influences of the enterprise’s profit ability, growth ability and innovation is not obvious on the results of the issue audit. Chinese issued audit did not fully appreciate the issuance efficiency audit requirement..The significance of this study is as follows: Theoretically, we try to innovate the research method of IPO result factors. It is meaningful for the detailed study of IPO research. And as to the practical significance, the research conclusion of this paper can provide the beneficial enlightenment of market parties. For the enterprise,it can make the enterprise to seize the key points of success pass the audit IPO examination; For intermediaries,it can promote the underwriting sponsor’s attention to work more efficiently; For government supervision departments, it can let them see their achievements and defects, so as to obtain the future direction of improvement.