Journal de l'économie mondiale

Investment Bank Reputation and IPO Qualifications

Abstract

Yubo Li

In this paper, we examines the influence of investment bank’s reputation and political connection on the IPO qualification of Chinese firm, The results show that firms which sponsored by prestigious investment banks more likely pass the regular’s screening process, the investment bank’s political connection have no significant impact on the IPO qualification. We further compared the investment bank’s customer characteristic, and find that the customers of prestigious investment bank are more large-scale, high growth companies, and more central enterprises, indicate that high reputation investment bank tend choose low risk and high growth prospective IPO companies in order to avoid damage to reputation.