Research On The Sustainability Of IPO Performance And Investment By Institutional Investors

As an important part of the capital market,institutional investors have the strong capital ability and professional investment ability,which plays an important role in optimizing the financing channels of listed companies,improving the ownership structure,supervising violations by directors and supervisors,improving corporate performance,protecting small and medium investors and many other aspects.However,when institutional investors make use of asymmetric information to speculate,they will become the "leader" in the herd effect,which will cause the market to blindly follow the trend,resulting in the rise and fall of stock prices,and aggravating the abnormal market volatility.With the implementation of the registration system reform and the new Securities Law,China’s capital market has "zero tolerance" for violations,and puts forward higher requirements for the autonomy of information disclosure of listed companies and intermediary agencies.When institutional investors have "surprise investment" behavior,companies are required to disclose relevant information about institutional investors in a detailed,full,and timely manner.This paper selects Keystone Technology Co.,Ltd.as the case study object.Based on the company’s prospectus,feedback,announcement,regulatory inquiry letter,media reports,and other textual materials,The main changes in business model,ownership structure,profitability,debt-paying ability,stock price fluctuation,and sustainable development ability before and after IPO are investigated in detail by text analysis,comparative analysis,and event study.The results show that When institutional investors have a sudden investment in the IPO process,they will not be able to effectively participate in corporate governance to curb the speculative behavior of the company’s management,resulting in abnormal stock price fluctuations and obvious differences in performance between the company and the company before IPO.Based on this,this paper puts forward the following suggestions from the three aspects of regulatory authorities,investors,and companies: first,regulatory authorities should establish a differentiated regulatory mechanism during the three periods when institutions become shareholders;Second,investors should use the fair fund system and training mechanism to improve rationality;Third,the company should pay attention to the integration of institutional investment and corporate value.The research in this paper is of certain significance to restrict institutional investors and corporate speculation and enhance the autonomy of information disclosure in the process of IPO.This paper focuses on the strategic and speculative motivation of institutional investors in the process of corporate IPO,and comprehensively uses text analysis,financial ratio analysis,event study,and other methods to explore the impact of surprise investment on corporate governance and performance sustainability.The research has certain timeliness and innovation.