Do facial expressions and responses during roadshows affect IPO prices? Empirical evidence from China's registration-based system reform

The reform of the registration-based IPO system represents a profound transformation in the evolution of China's capital market, shaping not only its future trajectory but also the long-term growth prospects of the Chinese economy. Drawing upon the signaling theory and cognitive dissonance theory, this paper examines the impact of the registration-based reform on the behavioral characteristics of management during IPO roadshows. Using A-share listed companies with IPO roadshow videos from 2017 to 2023 as the research sample, this paper constructs construct indicators capturing managerial facial emotions and response characteristics. The study found that compared with the IPO roadshow under the approval-based system, the facial expressions of management in the IPO roadshow under the registration-based system are more positive, the responses are more positive, and the similarity of questions and answers is higher. Further research shows that the issuance price-earnings ratio of enterprises has increased under the registration-based system, and the behavioral characteristics of management are significantly correlated with the issuance price-earnings ratio and the long-term market performance after issuance. This paper deepens the economic effect analysis of the management's behavioral characteristics during the IPO roadshow under the background of the registration-based system reform. The potential role of management soft information in the stock issuance price formation mechanism is explored, providing academic reference and empirical basis for the healthy development and regulatory optimization of the capital market