Restart On The First Day IPO Returns Over Empirical Analysis

The first public offering of company shares is called the IPO (Initial Public Offerings), is a stock company owned by a few people into a public float of the important steps. Many of the IPO phenomenon has been concern and research focus, which is known as the "new shares myth" of the IPO proceeds over the first day of the phenomenon is one of the focus of today's financial sector.IPO on the first day the stock market excess returns is a common anomaly. IPO pricing related to government regulators, various intermediaries, investors and listed companies, and many market players, can be said that multi-game results. However, abnormal phenomena as the first day of IPO returns over a long time but there had never been completely corrected, domestic and foreign scholars in this field has been studied. Before the nineties of last century, most mainstream view is that abnormal excess earnings from the first day of issue of pricing is too low (ie, underpricing), and the issue price is too low because of the risks facing investors compensation. After the nineties of last century, more scholars recognize that the first day underpricing is not the only reason for excess returns, because the world is no evidence that the secondary market for the stock is sufficiently effective, the first day of excess proceeds may be because first day of trading price is too high.This issue price from the primary market and secondary market trading price to determine the formation of two links to explain over the first day of China's IPO proceeds. Stock Markets in the presence of financial regulation, information asymmetry and stock split to bring the investment risk caused an issue price determined by market inefficiency. Meanwhile, the secondary market stock short selling restrictions exist in the strict and non-rational noise traders cause the secondary market trading price positioning of inefficiency. IPO proceeds not only from the first day of excess underpricing in the primary market, but also contains the secondary market premium.May 22,2009, the CSRC issued "on further reform and improvement of new shares issued guidance system (draft)", published to solicit public views. After nearly a year of suspension, resumption of China's IPO opened the curtain again. Restart after the Chinese securities market, it can effectively eliminate all the disadvantages of excessive inhibition of the first day of excess returns and abnormal problems, There is no scholars have done in depth. Therefore, this article will be selected after the issue of resumption of China's IPO shares as a sample, from the information asymmetry, the reputation of underwriters, our unique system and the IPO investor sentiment in China four perspectives on the first day of resumption of China's IPO phenomenon of excess returns empirical analysis, and seek from the perspective of financial management over the first day of IPO to explain the phenomenon, and then make relevant and reasonable opinion, the promotion of China's listed companies on the IPO reasonable pricing, optimizing capital market allocation of resources. This article includes the following:The first chapter discusses the first day of our IPO proceeds of over-the background and significance, and to present my research ideas and methods and the lack of innovation of this article.The second chapter on the first day at home and abroad on the IPO issue proceeds over the relevant theories and hypothesis, also the author of these simple theories are reviewed.The third chapter, analysis of the IPO proceeds over the first day of the causes and on the impact of market players.The fourth chapter on the resumption of China's IPO after 2009 to March 31, 2010 of shares data in multiple linear regression analysis, and interpretation based on the analysis of various factors on the first day of IPO proceeds of influence over.The fifth chapter, based on the empirical analysis of the results, so our first day IPO returns back to normal over the relevant recommendations.The empirical study found in 2009 in China after China's IPO IPO first day of resumption of the excess rate of return was 61.01 percent average, including the first day of IPO in Shanghai and Shenzhen stock market returns over the mean of 53.41 percent, the first day of the GEM IPO abnormal returns mean of 75.50%, with higher IPO IPO before restarting the first day of excess returns compared to the level already has a larger decline. Description IPO shares in China after reboot the issue and pricing system has been rationalized, market-oriented mechanisms are strengthened, and that the IPO market is continually maturing. But we should also see that our shares on the first day returns than in developed capital markets, or there is a big gap. In view of this situation, I would reduce the proposed chapter on the first day IPO returns relevant recommendations of the hope that through these proposals can make the IPO and the pricing system more reasonable, also hopes to promote the conduct of market players more standardized, so that the health of our country toward the direction of the stock market.