A Study On The Shareholding Structure's Influence On IPO Underpricing

IPO underpricing refers to the phenomenon that Issue price of stock are lower than the prices in the secondary market. This phenomenon nearly exists in the capital markets of many countries, but its degree of underpricing is not the same in different countries. The massive research indicated: the underpricing is graver in the developing countries than in the developed countries. To compare with the developed country' Stock market of several hundred years, China's stock market starting is late, started from the early-1990s to present is merely several dozens year, which is still not mature with irrational investors. the understanding has the huge difference to the market in different countries. IPO underpricing phenomenon is unique in china andthe explanation of underpricing was also different to the foreign market In this paper, in view of the special circumstances of the stock market, the IPO business ownership structure is the starting point to examine the issue of IPO underpricing. First, based on the modern theory of the firm and company management, Briefly discusses the basic concepts of ownership structure and analysis the influence of the ownership structure on company value. Second, by choosing IPO enterprises'dates between June 2001 to June 2007, Empirical methods is used to analyze the extent of IPO underpricing changes and ownership structure'impact on the existence of it. Through regression analysis to study the relationship between the quantitative, and reveals the relationship between shareholding structure and various factors in China's stock markets, which has a different characteristics from the research in the foreign market .