Research On The Impact Of IPO Value Review Inquiry On Corporate Performance Under The Registration System

On June 13,2019,SSE STAR MARKET was officially established and registered its first batch of companies on July 22 of the same year,a practical milestone in the reform of China’s stock issuance registration system.The new version of the Securities Law of the People’s Republic of China(2020)not only clearly provides for the full implementation of the registration system for the issuance of shares in China,but the Law also emphasises the relevant provisions of the information disclosure system in China.China’s share issuance system has undergone multiple changes eventually steadily evolving to a registration system.Yet the changes in the system have never changed the key position of information disclosure as a key influence on share prices.Under the registration system,the market has the power to judge the value of the issuer,while the CSRC only reviews whether the various financial or operational indicators of the company are met and the various risk factors,rather than making "significant" decisions for the market.Instead,the review and inquiry is a self-regulatory type tool of the CSRC,which aims to encourage STAR Market and CGEM issuers to improve their disclosures at the IPO stage by sending inquiry letters to guide and monitor issuers’ disclosure practices on key issues.Based on the above background,this paper studies the impact of IPO value audit opinions on corporate performance under the registration system,starting from the dimension of the characteristics of the form of SEC audit inquiries,establishing hypotheses based on the research proposition,and selecting the issuers of China’s SSE STB and SZSE GEM from 2019-2021 as the initial research sample for empirical analysis.It is found that: the decline of enterprises’ performance after listing reflects the motive of enterprises’ surplus management and the possibility of opportunistic listing,so the disclosure of a large number of audit inquiry letters reflects the improvement of the regulatory system to a certain extent,can promote enterprises to improve the standardization and true validity of self-information disclosure,and can directly and effectively suppress the "performance change" of enterprises after listing The situation of "performance change" after listing.And the transparency of examination and inquiry and the improvement of examination efficiency of the stock exchange can reduce the speculative behavior of enterprises,thus promoting the stable and positive development of enterprise performance.On 1 February 2023,the China Securities Regulatory Commission("CSRC")will openly consult the public on the rules of the system for the full implementation of the registration system for the issuance of shares,marking the countdown to the full implementation of the registration system in China,which will put the choice back in the hands of the market,enhance the efficiency of financing and market vitality,and also facilitate the elimination of winners and losers of listed companies.Based on this paper the path in reviewing the inquiry letter to information disclosure to corporate performance stability provides a new perspective for each stakeholder.The information disclosure system plays a central role in this reform of the registration system.,significantly enhances the transparency,efficiency and predictability of the review and registration,while reinforcing quality requirements and further monitoring of the issuer’s primary responsibility for disclosure and the intermediary’s responsibility as gatekeeper.The CSRC has shifted to overseeing the entire process of issuance and listing,thereby reducing problems such as "face-lifting" of listed companies.