Empirical Research Of IPO Underpricing In SME Market: Analysis Based On Behavior Finance

The phenomenon of IPO underpricing is existed almost every capital market in the world.IPO underpricing in China is very serious.As China's capital market are open to the world,more and more small companies choose to raise money on the capital market. The research of Chinese SME IPOs underpricing Phenomenon,identifying which factors have great affect on our IPO underpricing have strong theoretical and pratical significance.This article includes five chapters:First chapter is the introduction,which includes the background of the problem,the research statement of overseas and innerland,the innovation of this thesis;secondly I makes a more detailed review and comment of the study of foreign IPO underpricing, after that I review what the researchers of China had done in this field.And then,I Point out the weakness of their researchers and what I will do in my article.In the third part I give a brief introduce of SME.At the same time I Point out China stock market is a closed market and the investors in IPO market may behave some psychological biased and irrational behaviors,which may have great influent on the pricing of IPOs in the first and second market.In the fourth chapter,I use the eviews application,making the Statistical analysis on the selection of 273 IPOs,and constructing a multiplelinear model to make regression analysis on the samples.Finally,the conclusion is drawn,the suggestions are given and the limitations are postulated.The follow are the main conclusions in this dissertation:Before share-trading reform,the main factors of affecting the underpricing are the first day of stock exchange rate and After share-trading reform, the issue PE,the issue lot rate,return on market before the issue are all significant factors. Verify that investor sentiment is an important factor in SME IPO underpricing.