A Comparative Research Of The Screening Effect Of The Substantive Review And Registration System

This thesis analyzed the evolution of Chinese IPO substantive audit system, and elaborated the existing problems of it in today’s market and economic environment. Then, this thesis asked a question, “Can the substantive audit system efficiently screen the good IPO resource?”Through mathematic modeling, this thesis built a model to discuss former problem, got the conclusions that “both substantive review and registration system has advantage and disadvantage, depend on the market environment”, and conclude that the feedback of market participators will weak the screen effect of substantive review. At last, this thesis presents the view that Chinese IPO rule will choose registration system in future.