The Empirical Study On The Effect Of Over-allotment Option To Initial Published Stock Price

With the more market-oriented of China's security,the risk in the primary market gradually appeared.The initial published stocks' prices were extremely volatile or even broken issued price. So underwriters introduced over-allotment option which is extensive used internationally,in order to adapt the change of market,depress the issue risk of underwriters and stabilize the price of initial published stocks.Stemed from America firstly,over-allotment option is a price supporting measure of capital issue that underwriters used this option to depress risk of capital issue,stabilize the price of initial published stocks and ultimately ensure the stock which underwrited was able to come to the market successfully.In practice over-allotment mechanism was proved virtually and was the most transparent price supporting measure.Over-allotment mechanism gradually became a standard practice in process of IPO internationally.We did not do some studies on the effort of over-allotment option's practice in b' shares market and a' shares market,although over-allotment mechanism was introduce to the process of IPO of b' shares market and began to used in the process of IPO of a' shares market.Unconditionally, it has important theory sense and real value to research the practice effect of the over-allotment mechanism.In order to acquire the studies actuality of this domain and borrowed ideas from these concerned research techniques,the paper firstly reviewed and summarized correlation studies of home and abroad.Secondly the paper introduced the general situation of over-allotment,including the conception of over-allotment,application condition,concrete operations,origin and development in abroad and home.Then the paper analyzed the mechanism of stabilize stock's price and depress price's wave in the abstract which including maintain the issued price through underwriters repurchased stock when the price broken issued price or increased stock when the price r soared so much,and underwriter can partly improve the efficiency of make a price for IPO in a' shares market. At last by using the newest data the paper parting adopted statistical,model method and case analysis means to empirical studied on the effect of over-allotment in b' shares market and a' shares market,and analyzed the reasons of the practice effect not obvious.This article draws two conclusions as follows via empirical study:1.the effect of practice over-allotment in b' shares market is not obvious2.the effect of ICBC practice over-allotment in A' shares market is obviousThis article draws three policy advice by the conclusion:1.increase the market-oriented of China's security2.strengthen the construction of over-allotment mechanism's supporting measures3.increase the degree of information disclosure in the securities market...