Influencing Factors And Suggestions Of IPO

As an important part of China's equity market,initial public offering has become a central topic of research.China's current initial public offering system is approval system which means the committee determines the listing of companies.Therefore,studying the influencing factors is helpful for exploring the efficiency of China's IPO resource allocation efficiency and making recommendations to improve China's initial public offering system.This paper summarizes the results of the IPO over the years.The result shows that the volatility of review amounts and financing amounts of IPO in China's A-share market are relatively large.And it is mainly affected by the macroeconomic and market sentiment.The pass rate of the IPO review has a strong connection with the review style of the audit committee.In recent years,the committee has gradually increased its focus on accounting and information disclosure.The style of review gradually shifted from substantive review to risk-oriented review.Based on the above analysis of the status,This paper proposes hypotheses from the macro,industry,and company layers.It uses the Logit model to study whether the above assumptions were significant.The empirical findings show:(1)In general,the auditing behavior of the committee is relatively independent,and approval result is not affected by macroeconomic and industrial factors.The macroeconomic and industrial factors mainly affect the number of IPOs and the amount of financing.(2)There is a significant positive correlation between the average annual growth rate of net profit,the risk investment,the reputation of the sponsor institution,the company's age and the approval rate of the issuance.(3)The 17 th Audit Committee paid more attention to the risk factors of the company,which is also consistent with the phenomenon we actually observed.Based on the above conclusions,this paper believes that the companies want to list need to strengthen their own advantages and pay more attention to the company's sustainable profitability and growth.And it is necessary to establish a perfect internal control system to reduce the company's own compliance risks and financial risks,and choose a higher-respecting sponsor institution to go public at the right time.Sponsors need to actively improve their team's business level to have basic professional capabilities.The audit committee should continue to maintain the audit style and the normalization of review.