A Study On The Governance Effect Of The Inquiry Letter Of The Issuance Examination Committee

Nearly 20 years of China’s social development very quickly,industry development situation is good,in the meantime,the country’s capital markets also get the corresponding perfect and development,many enterprises in order to be able to seize the capital,in the capital market have more development opportunities and space,choose with IPO in help enterprise capital financing.However,in recent years,such as the IPO fraud event of "Green Giant" ecological environmental company and the performance plunge after the IPO of "Canadian Solar Inc." with huge losses occurred frequently,which not only cost market investors a lot of money,but also posed significant obstacles to the capital market’s normative operation.In order to adapt to the development of capital market,maintaining the standard operation of the capital market,powerful supervision of regulators is indispensable,and the way of supervision innovation has become the key point of the development of the market supervision and direction,the inquiry function system is one of the important way of supervision,after the listing of exchange or securities regulatory commission to apply for or problems of the enterprises to issue a letter of inquiry Ask the causes of problems and require enterprises and third-party institutions to give appropriate and reasonable explanations for these problems.However,there is still no definite conclusion about whether the inquiry system has positive external governance effect on enterprises.To begin,this paper covers the research substance and research methodologies,the research framework,and the core question of this study after explaining the research background and relevance,which is whether the commission’s inquiry letter has a positive external governance effect on enterprises applying for IPO?The research state of IPO at home and abroad,inquiry letter research,and non-penalty supervision related literature are then sorted out based on the appropriate theoretical basis.Secondly,the overall situation of inquiry letters in the last five years of the China Securities Issuance Examination Committee was analyzed and sorted out by querying relevant information.Again,using the case method,through choosing Shanghai Golden Union Commercial as a case study object,six prospectuses were filed,three times by inquiries,be rejected twice,judge whether they have rectified the problems concerned in the inquiry letter issued by the committee or not,so as to sum up whether the inquiry letter issued by the committee has a positive external governance effect;Finally,from case introduction to the process of being questioned and the performance after listing,this study examines the China Securities Issuance Examination Committee’s inquiry letter in detail and concludes that the inquiry letter of the committee has certain positive external governance effect on Shanghai Golden Union Commercial Co.,Ltd.And from the standpoint of listed firms,investors,and regulatory agencies,the following suggestions are made: To standardize enterprise internal information disclosure for publicly traded companies,to perfect the enterprise internal control system,and to improve the enterprise internal control system.for regulators to improve regulatory departments at all levels of responsibility consciousness,in raising responsibility consciousness at the same time can increase the intensity of punishment,reduce irregularities,don’t lovers,the risk for investors to choose the right investment strategy will do to maximize revenue.