The Impact of Information Disclosure Consistency on IPO Pricing Efficiency: Evidence from China's A-share Market (Frontiers in Economics and Management)

Summary

• The study collects an initial sample of 1,244 IPO firms listed on China's registration-based boards from 2019 to 2025, yielding a final sample of 689 valid observations after screening.p.5
• The analyzed sample exhibits a mean IPO underpricing rate of 1.158 with a standard deviation of 1.244.p.8
• Information disclosure consistency across the sample records a mean score of 0.178, a median of 0.140, and a maximum value of 0.695.p.8
• An IV-2SLS regression addresses endogeneity concerns, producing a first-stage F statistic of 125.72 and a consistency coefficient of -3.170.p.12
• Controlling for secondary-market trading sentiment yields a consistency coefficient of -0.481 alongside a post-listing average daily turnover coefficient of 0.017.p.13
• Board-level heterogeneity analysis shows a consistency coefficient of -0.645 for ChiNext compared to -0.356 for the STAR Market.p.15

Key insights

1. Intertemporal textual consistency between prospectuses and post-listing annual reports significantly reduces IPO underpricing in China's registration-based market.p.1
2. Low ex post textual consistency indicates ex ante over-packaging, leading investors to demand higher underpricing risk compensation.p.4
3. Internal corporate governance and external information disclosure consistency exhibit a functional substitution effect in curbing IPO underpricing.p.4
4. The pricing-correction effect of textual consistency is more pronounced in market boards characterized by greater information asymmetry.p.5
5. Instrumental-variable estimation confirms that the negative relationship between disclosure consistency and underpricing remains robust to endogeneity.p.12
6. The restraining effect of textual consistency operates independently of short-term secondary-market trading turnover and analyst coverage.p.13
7. Textual consistency plays a significantly stronger role in reducing underpricing among firms with lower internal corporate governance scores.p.14