Positive Analyses of Underwriter Reputation and IPO Underpricing Based on Reform of Supervisory System of China Stock Issue

Through building regression model and testing the relationship between underwriter reputation and IPO underpricing based on 793 A-share samples of Shanghai and Shenzhen Stock Markets,this paper concludes that the underwriters begin to value construction and maintenance on their reputation with the change of supervisory system on stock issue,furthermore,due to non-complete market of pricing system in Chinese stock issue,there exists positive correlation between underwriter reputation and IPO underpricing on the whole.It means that the reform is effective on supervisory system of Chinese stock issue,which strengthens underwriters' responsibility and risk prevention,quickens survival of the fittest underwriters,puts underwriter reputation mechanism in shape,and promotes construction and maintenance on underwriter reputation in Chinese stock market.