Corporate R&D Information Disclosure And IPO Underpricing

"The mystery of IPO underpricing"is one of the top ten mysteries in the financial academic circles,and it has attracted the attention of scholars.China's Growth Enter:prise Market officially opened on the Shenzhen Stock Exchange on October 23rd,2009.The first batch of 28 listed companies rose sharply on the first day of listing,with an average increase of 106%on the first day.Due to its special enterprise nature and market positioning,the GEM enterprises have large investment in R&D,and there are many uncertainties in the future.The risks are high,which makes the information asymmetry among IPO entities such as issuing companies,underwriters and investors rise,consequently,the IPO underpricing rate has been high.Information disclosure is like a bridge connecting all parties,which can alleviate information asymmetry and reduce IPO financing costs.Moreover,in 2013,the China Securities Regulatory Commission issued the "Opinions on Further Promoting the Reform of the New Share Issuance System",which increased the information disclosure requirements and supervision of IPO enterprises.In view of this,this paper intends to use the data of the listed GEM companies from 2009-2017 as a research sample.Based on the literature review and theoretical analysis,the content analysis method is used to obtain the enterprises' R&D information disclosure degree by reading the prospectus and assigning value.By constructing multiple regression equations,this paper intends to test the impact of corporate R&D information disclosure degree on IPO under:pricing,and further test the differences between the different industries,property rights and marketization levels.The empirical results show that:(1)the greater the R&D investment,the higher the IPO underpricing level;(2)the R&D information disclosure level is significantly negatively correlated with the IPO underpricing level,that is,the more detailed the R&D information disclosure,the lower the IPO under:pricing level of the company's initial public offering;(3)The role of R&D information disclosure degree to reduce the IPO underpricing level is more pronounced in high-tech enterprises and in enterprises with higher marketization,but not in state-owned enterprises.This paper tests the impact of corporate R&D information disclosure degree on IPO underpricing through empirical research,and provides suggestions for the improvement of the capital market system and the healthy and orderly development of the GEM.