Beschreibung:
This paper investigates the effect of customer risk disclosure on IPO approval rates through entity recognition of customer names in the risk sections of prospectuses. Our evidence shows that companies that proactively disclose customer names are more likely to successfully obtain IPO approval. Futhermore, this study demonstrates that disclosing customer entity names significantly reduces the IPO review duration. Finally, the effect is more pronounced when the reputation of lead underwriter is lower, under the approval-based system, and a non-state-owned enterprise. This research provides theoretical and empirical evidence for enhancing customer risk disclosure practices and promoting stability in the capital market