Study On Initial Public Offerings Timing And Underpricing Of SME Board

On May 17th, 2004, Small and Medium Enterprise Board was established. At the present time, its developing time is shorter, system is perfecting, and few specialists and scholars process empirical studies on SME Board. Based on that, according to its characteristics, this dissertation does the empirical study on timing and underpricing of Initial Public Offerings in SME Board. This paper contributes to the on-going debates about the timing and underpricing of Initial Public Offerings in SME Board. This thesis consists of five chapters. Firstly is the introduction, which includes the background of the problem, the research statement of overseas and inner land, the train of thought, the innovation of the thesis. Secondly, this paper studies the main procedure of IPO, analyses and summarizes orientation, function, establishment, the present developing and future trend of main overseas growth enterprise markets and SME Board.Based on the real options, this paper studies Initial Public Offerings timing of SME Board, builds up the model of timing of IPO in SME Board. According to the empirical result and the assumptions, this paper gets the method of the optimal moment to go public, and indicates that the growth company will go public earlier. And then, this paper reviews the theories of IPO underpricing in recent years, and makes an empirical study on SME Board. The study indicates that there is an excess rate of return on SME Board, and can be explained by Speculative-bubble Hypothesis. Some of SSE Guidelines have the positive effect on the development of SME Board. Finally, the conclusion is drawn, the suggestions are given and the limitations are postulated.The follow are the main conclusions in this dissertation: According to the empirical result and the assumptions, this paper gets the method of the optimal moment to go public, and indicates that the growth company will go public earlier; the study indicates that there is an excess rate of return on SME Board, and can be explained by Speculative-bubble Hypothesis; some of SSE Guidelines have the positive effect on the development of SME Board.