Does reputation of sponsors matter in IPO?Evidence from Hong Kong  

作　　者：Wilson H.S.Tong Michael B.T.Wong 

机构地区：[1]School of Accounting and Finance,Hong Kong Polytechnic University,Hong Kong,China [2]Hong Kong Securities and Investment Institute,5/F,Wing On Centre,111 Connaught Road Central,Hong Kong,China

出　　处：《Frontiers of Business Research in China》2020年第2期172-195,共24页中国高等学校学术文摘·工商管理研究（英文版）

摘　　要：Contrary to other markets where underwriters perform a combined role of underwriting and sponsoring in an Initial Public Offering(IPO),IPO issuers in Hong Kong must appoint at least one sponsor in addition to the underwriters.The spitting of the single role of underwriters into two separate ones offers an ideal setting to disentangle the effects of the two roles and to examine which of the two roles-sponsor or underwriter--is more important in explaining IPO underpricing and initial volatility in the Hong Kong equity market.Interestingly,our findings provide supportive evidence that the sponsor reputation does matter in an IPO and it is even more significant than the underwriter reputation in explaining the IPO underpricing phenomenon.Given the recent high-tech fervor,our research goes deeper to examine specifically the role of sponsors on high-tech firms,with results indicating that the reliance on sponsors is higher for traditional isuers than for technology firms.We further discover that sponsors and underwriters are playing substitution roles rather than complementary roles.In order to examine the regulatory policy impact,our research also compares the role of IPO sponsors before and after the launch of the new sponsor regulatory regime in 2013.The empirical findings lend support to our argument that after the launch of the new regulations,public awareness of sponsors is raised,respect towards more reputable sponsor increases,and thus,the role of sponsors becomes more impotant than before.

关 键 词：Initial public oferings(IPO) Sponsor reputation Underwriter reputation IPO underpricing IPO return vltilty IPO sponsor regulatory regime 

分 类 号：F83[经济管理—金融学]