Prof. Dr. Harald Hau (Professor für Finanzen, Universität Geneva) spricht im Rahmen des Finance and Insurance Seminars zum Thema:

Discretionary Administrative Power and Conflicts of Interest in China’s IPO Approvals

Abstract: China’s IPO approval process co-opts audit firm representatives into the regulatory decision body, which creates conflict of interest and potential channels for corruption. We show evidence that these auditors (i) do not differ in their auditing practise of already listed firm from similar professionals, but (ii) attract more IPO clients that do not comply with the listing requirements, and thus achieve higher revenue growth, (iii) increase their own client’s chance of IPO approval, which (iv) afterwards often underperform. The two-year stock underperformance in term of the abnormal buy and hold return reaches −18 percent for the marginally approved IPOs with conflicted auditors, which is indicative of a misrepresentation of firm prospects at the IPO stage.

Im Wintersemester 2023/24 wird das Finance and Insurance Seminar in Präsenz durchgeführt. Für Interessenten wird ein Zoom Meeting angeboten. Die Zugangsdaten werden auf Anfrage mitgeteilt. Bitte senden Sie hierfür eine Nachricht bis zum 30.01.2024, 12:00 Uhr an alvia.runge@wiwi.uni-muenster.de.