Study Of The Long-run Performance Of IPO In China's Share Market

The long-run performance of Initial Public Offerings(IPO) is one of the three puzzles in IPO studies,and also a hot issue in western academy.This paper focus on the initial public offering(IPO) of the 216 sample stocks in Chinese A-share market,using event-time and the calendar-time method to analysis the five-year performance from 1998 to 2001 respectively. Both methods show that Shanghai A-share at a long term weakness position and the degree of weakness will tend to enhance gradually.Finally,with the empirical study,we propose six propositions and use multi-regression to justify these propositions,lead to several conclusions to explain the IPO underperformance.Also,this paper analyzes factors of the system which infect the performance of IPO,and gives related policy of suggestions.