Empirical Analysis Of Influence Factors About IPO Underpricing In China's Growth Enterprise Board

Prepared 10 years, the high-profile GEM has finally opened on October 23, 2009. As an important part of establishing multi-level capital market system in China, GEM provides an important financing platform to SMEs. However, the crazy performances of GEM cause intense debate about IPO underpricing when it opened. This research uses a database of 206 listed companies from the initial 28 listed companies of GEM to April 25,2011. According to existing research and actual situation in China's GEM, the research selects 10 explanatory variables which may influence the IPO. Assuming the linear relation between the IPO underpricing and the 10 explanatory variables, the research built a linear regression model and use the OLS, White Text and other methods to examine and correct the model. The empirical result found that there are eight explanatory variables influenced the IPO underpricing. The offer price, the offer P/E, the lottery rate the rate of underwriting fee operating revenue and the offer scale have significant negative relationships with the rate of IPO underpricing, and the first day turnover rate, the first day Shanghai Stock Index change rate and the ROE have significant positive relationships with the rate of IPO underpricing, then the research also why the rate of growth about prime and the asset-liability ratio have on significant relationships with the rate of IPO. At last the thesis suggest to improve the stock market, strengthen the responsibility of underwriting and sponsor broker, enhance the moral of listed companies,and cultivate investors the awareness of risk and the notion of value investment.