Research On Pricing China's Domestic Stock Based On SVR

Initial Public Offering's (IPO) pricing is the core process of the offering business. A successful offering can raise funds to enlarge the firm's operation size and help to improve both the capital structure and governance structure. Nevertheless, IPO pricing is always regarded as one of the most confused puzzles in finance across the world. Problems such as IPO underpricing come up from time to time. Academicians focus on pricing mode, reasons and range of IPO underpricing when studying of IPO pricing. Researches of how to establish a fair, proper and scientific IPO pricing modern is rare. Discussing the issue of IPO pricing means discussing the valuation of a firm that is going public.Under mature stock pricing theory, this paper analyze the relationship between IPO pricing and main influencing factors, then establish IPO pricing moderns which are suitable for China market. The main purpose is to offer a reference for the future study on IPO pricing.In detail, this paper analyzes the economic theories and modeling methods of five conventional IPO pricing models and compares their application fields and limitations. These six models includes cash flow discount model, contrast firm valuation model, economic value-added model, multi-factors pricing model and option pricing model. Then, index system of IPO pricing influencing factors based on public information is built up of three layers from macro economics, market situation and firm finance. Finally, IPO pricing models are established which includes one large sample model of information board and four small sample models consisting of mining board, finance board, commerce board and social service board. Under every board, there are three corresponding models.The research results show that: 1) effect of deleting exceptional samples is not obvious to improve the pricing errors of large sample; 2) deleting exceptional samples can advance the pricing errors of small sample; 3) the pricing error of models with three layer indices of macroeconomic, market and firm factors are better than models with only finance indices factors.Finally, based on the limitations of this paper, it points out future research directions.