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168th biweekly Academic Forum

作者:     日期:2016-03-22    来源:

I      Theme: Reputation of securities brokers and performance of company IPO——Evidence from IPO fraud in Chinese listed firms

II   Speaker: Zhang Xueyong, professor, vice dean and doctoral supervisor in the School of Finance, Central University of Finance and Economics. Dr. Zhang acquired his PhD in Economics at Zhejiang University in 2007 and furthered his Postdoctoral research at Tsinghua University from 2007 to 2009. His research fields include performance evaluation and strategy analysis of mutual funds and hedge funds; strategy construction of quantitative investment and data back testing; investment strategies and return channels of private equity fund and risk investment; merge and acquisition, IPO and value creation. Dr. Zhang is the host of a National Natural Science fund and a China Postdoctoral fund, and he has published a set of paper in important journals include Pacific-Basin Finance Journal, China Journal of Accounting Research, Economic Research and Finance Research. Dr. Zhang was selected to join the Ministry of Education’s New Century Excellent Talents Training Supporting Plan, and he made his visit research to Pennsylvania State University in 2011. Dr. Zhang is also a member of CPA.

III   Time: March 23, 2016 (Wednesday), 13:00-14:00

IV   Venue: Meeting Room 913, Main Building

V    Host: Huang Zhigang, Vice Professor from School of Finance, Central University of Finance and Economics

VI   Sponsor: School of Finance, Central University of Finance and Economics

Abstract: Research has proved that the reputation of securities brokers is significantly associated with the IPO performance of companies that they underwrite securities for, but people still have different opinions on how to measure the reputation of securities brokers. Different from foreign literature, which commonly adopt indirect index such as market shares of brokers in the market and ranks of brokers, this paper divides brokers into a group with good reputation and a group with bad reputation based on the fraud events in the process of IPO of companies they underwrite securities for. The empirical research shows that, for the same period of time, compared with companies whose securities were underwritten by other brokers, companies whose brokers that have underwritten securities for companies which were released to make fraud in the process of IPO will have higher issue premium rate and lower long-term stock return. For the same broker, after the IPO fraud being released (the reputation has been damaged), companies that they underwrite securities for will have significantly higher issue premium rate and lower long-term stock return. Evidence from the DID model supports these conclusions, which indicates that compared with traditional index on brokers’ reputation, the index based on IPO fraud is more effective. Research in this paper provides new and direct evidence on understanding the effect of brokers’ reputation on companies’ IPO.