TITLE:
Background Characteristics of Board Secretary and IPO Underpricing
AUTHORS:
Zhihao Lin
KEYWORDS:
Board Secretary, IPO Underpricing, Information Asymmetry
JOURNAL NAME:
Modern Economy,
Vol.8 No.11,
November
24,
2017
ABSTRACT: The information asymmetry between the internal
environment and external environment of enterprises composes one of essential
factors leading to IPO underpricing. According to upper echelon theory, background
characteristics of senior executives will exert an impact on their behaviors
selections as well as the performance of company. The board secretary in China,
as the information publisher, can also influence IPO underpricing with his/her
personal background. Testing the samples of GEM (The Growth Enterprise Market) in
China from the year of 2009 to 2012, the paper concluded that the board
secretary with financial background and related working experience can reduce
the IPO underpricing, based on which the conclusion has been drawn that the
personal background characteristics can influence IPO underpricing and further
affect the IPO pricing efficiency, hoping to provide reference for enterprises
to recruit the right person for board secretary.
