Empirical Research On Premium Of IPO In Shanghai And Shenzhen Stock Markets

The system of issuing new shares in the securities markets in China has achieved initial success as Split Share Structure reform in 2006. On the basis of this, the implementation of "the compartmentalization of old and new" is based on establishing of an inquiry mechanism facing institutional investors. Meanwhile, there come into being a distribution model to tilt to the institutional investors.An empirical research is analyzed on the basis of the theoretical analysis. Through drawing on the research results of stock pricing theory at home and abroad, we investigate the actual situation of China's stock market, collect data A Shares of 180 listed companies IPO (Initial Public Offering) in the secondary market of the Chinese securities market from 2006 to 2007. According to modeling built in this dissertation, we select the overall samples and annual independent testing samples, and China's new shares issued on its first day of trading after the listing of the first three trading days premium and a premium price volatility impact factors. The empirical research is about the impact China's new shares issued its first day of trading after the listing of premium and the premium price fluctuations the first three trading days. The results shows that the first IPO price premium will be affected by circulation of capital, earnings per share, turnover rate, the year listed a number of factors. The main measurement results shows that IPO after the listing of premium mainly occurred in the first day of listing; listed on the first day of the annual premium and the close relationship the introduction of the variables, the first day of premium and the flow of equity significant negative correlation, and earnings per share were negatively correlated with the day turnover rate significant positive correlation with the success rate is not significantly related, but the correlation coefficient was negative; the first three trading days after the listing of shares listed on the annual premium of close ties with the fluctuations, the introduction of the annual number of variables, and turnover rate mean a significant positive Associated with the flow of equity significant positive correlation with earnings per share, the success rate has nothing to do.In a word, supervision of the management since January 1, 2005 from the implementation of new shares Request system, to a certain extent, eased the first day of the phenomenon of excessively high premium on the IPO of China's premium level of inspection is of great significance. In the long term, with the distribution system and improve the level of pricing issue, the market valuation of the first day of IPO will reduce the premium so that they tend to rationalize. But in the short term effect, in the current market valuation levels, the two markets pulling effect of price differences still exist, distribution and pricing of the deficiencies of institutional investors listed in the first day of the speculation will lead to the first day of premium will still remain at a relatively high Level. Distribution system reform, promote market-oriented IPO pricing issues, actively and steadily solve the problem of split share structure, foster a stable institutional investors in lowering the high premium new shares and reduce speculation has positive significance.