The Research on Reputation Mechanism of Securities Underwriter: Formation,Cause of Reputation Missing and Improvement Methods

In financial securities issue market,underwriters play important roles as producers and authenticity certification agency to solve the information asymmetry problems.However,underwriters are facing creditability problems at the same time.Thereby,reputation is indispensable for underwriters in order to release moral hazard problems and to maintain creditability as an information producer.Through drawing into theoretical model of reputation,the paper emphasized the effect of underwriter reputation,and then analyzed the formation mechanism and the causes of reputation missing.Finally,some suggestions were provided.