Analyzing the Impact of Fintech on IPO Underpricing: Insights into Risk Management and Strategic Decision-Making in Sports Organizations

Abstract

The evolution of fintech has enhanced the efficiency of information transmission in the capital market, raising important questions about its potential to mitigate information asymmetry and reduce IPO underpricing in the primary market. This study explores the implications of fintech for strategic decision-making and financial management within sports organizations. Using the Baidu search index for the keyword "fintech," a regional fintech development level index is constructed, examining its impact through two pathways: liquidity compensation and underwriter selection. The empirical analysis utilizes IPO data from enterprises listed on the Science and Innovation Board and GEM post-registration system implementation. The findings indicate that regions with more advanced fintech development experience lower levels of IPO underpricing. Specifically, fintech reduces IPO underpricing by improving stock liquidity in the secondary market and strengthening enterprises' bargaining power with underwriters. Further analysis reveals that IPO underpricing for enterprises with greater financing constraints is more responsive to fintech advancements, with private enterprises benefiting more significantly than state-owned enterprises. This research offers novel insights into the role of fintech in asset pricing and strategic financial planning, with broader applications for sports organizations seeking to navigate capital markets, manage risks, and optimize investment strategies in an increasingly competitive environment.