An Empirical Study Of The IPO Underpricing In The Growth Enterprise Market Of China

Initial Public Offerings(IPO) underpricing which is the ratio of closing price over stock issue price of the the issuing company on the first trading date. And the underpricing level can reflect the maturity of the capital market. Our GEM-board which showed a higher underpricing issue, and attracted a majority of investors and academics'wide concern. While currently there is no systematic study of Chinese literature of the GEM IPO underpricing issues that this article attempts to analysis Chinese IPO underpricing of the GEM in theoretical and empirical. The full Paper is divided into six chapters, According to the vein of ask question, analysis question and solve question.Firstly, through the summarize of the underpricing research in domestic and foreign, we find out the mechanism of the stock pricing and release, the performance and reasons of underpricing and that the current research achievements and shortcomings. Secondly, by comparing the major international IPO issuance mechanism and the release mechanism of change in China, pointed out the advantages and disadvantages of various distribution mechanisms and the advantages of Accumulated bidding inquiry system in the GEM. Third, by the statistical analysis of the GEM IPO underpricing in China we pointed out some problem and put forward the solution ideas. Then, from the traditional theory and investor's prior optimism Sentiment in behavioral finance to explain the GEM IPO underpricing. Finally, through the impact of IPO underpricing GEM intrinsic value of companies, market information and investor sentiment, the three factors of theoretical and empirical examination of the problem is. Throughout the text, through the systematic analysis and empirical research we can draw some conclusions.(1)The IPO underpricing was more visible in Chinese stock, the GEM IPO underpricing was significantly higher than the Main Board. The first listed GEM underpricing was significantly higher than the follow-up market. Starting from the issue price and the price-earnings ratio, the performance of the GEM IPO underpricing showed little high.But which based on the SFA model shows that our GEM IPO pricing is valid, there is no deliberate underpricing the issuer's behavior.(2)The investor sentiment impacted the GEM IPO underpricing, and the underpricing model of a priori based on investor optimism can explain the reasons. At the same time, you can increase the transparency of information in release mechanism, enhance the investors'awareness and reduce the non-rational behavior which can improve the rationality of underpricing.(3)The intrinsic value of GEM's impact on the IPO underpricing is not obvious, and market information and investor sentiment is the main reason for underpricing. The first day of high turnover reflects the strong liquidity, but also shows strong speculative investors. Primary market of GEM, excess demand, reflected in the secondary market. The lower success rate stock which have a higher IPO underpricing, the higher turnover of stock in the first day which have a higher IPO underpricing.