Academic Experience Of Executives And The IPO Underpricing Of Companies Listed On The GEM

Since the GEM was launched in 2009,it has provided financing channels for growing and innovative start-ups,but the phenomenon of underpricing of IPOs of companies on the GEM has existed for a long time and the degree of underpricing is higher than that of the main board.Excessive IPO underpricing reduces the efficiency of resource allocation in the ChiNext market,is not conducive to the effective financing of entrepreneurial enterprises,and at the same time encourages speculation in the secondary market,deviates from the original intention of the ChiNext Board,and hinders the healthy and stable development of the real economy.There are many factors that affect the underpricing of IPOs on the GEM,and the fundamental reason is information asymmetry.The "winner’s curse","value uncertainty","agent costs" make the issue price of new shares fail to accurately reflect the value of new shares.The direct cause of IPO underpricing is the combined effect of the primary market issuing stocks at a price lower than the intrinsic value of the company and the secondary market investors pushing up the price of new shares.The GEM market mainly includes entrepreneurial and growing companies,Some scholars have found that the information asymmetry of the ChiNext IPO market is significantly higher than that of the main board market(Xu Rong,Jiang Qingxin,2013).The executives are the decision-making bodies of the operation,investment and financing of the company,and have an important impact on the various activities of the company,including the initial public offering of the company.The influence of the personal characteristics of the academic experience of its executives on the underpricing of GEM IPOs.Using the data of 844 listed companies on China’s ChiNext from 2009 to 2020 as a research sample,this thesis tests the impact of the personal characteristics of executives’academic experience on IPO underpricing of ChiNext listed companies through empirical research.Based on the existing research on the academic experience of executives and IPO underpricing,and supported by high-level echelon theory and information asymmetry theory,this thesis explores whether the academic experience of executives can reduce the level of IPO underpricing on the ChiNext Board,while taking into account government pricing controls,Whether there is a moderating effect in the reputation of underwriters,and further explore the mechanism of executives’ academic experience reducing the underpricing level of GEM IPOs.Through theoretical analysis,literature review and empirical testing,this thesis draws the following conclusions:(1)After controlling for relevant variables,the academic experience of executives can help reduce the level of underpricing of GEM IPOs;It is more significant during the regulated period and in the sample of non-reputable underwriters.Further through the empirical test of the mediation effect,this thesis finds that:(3)The academic experience of executives also alleviates the company’s true earnings management,reduces the information asymmetry among IPO participants,and reduces the level of underpricing of GEM IPOs.This thesis explores the factors that affect the underpricing of GEM IPOs from the perspective of the personal characteristics of executives,the main decision-making body of enterprises.It provides a theoretical basis,and provides new ideas for growing and innovative small and medium-sized entrepreneurial enterprises to improve financing efficiency and reduce financing costs,and help GEM enterprises to build a more complete executive team.