An Empirical Study On The Voluntary Publishing Of Earnings Estimate Information And IPO Underpricing In China

IPO underpricing is an issue widely concerned by domestic and foreign researchers.The rate of IPO underpricing is quite high in the securities market ofChina,which is much higher than that of the developed countries,and of the countries and areas of the same economic development level as well.It is called Tale of IPO.This situation has widened the gap between the stock supply and demand,caused damage to the capital allocating efficiency in the whole society.The rate of IPO underpricing becomes one of the important difficulties troublingthe China stock market.In the capital market,earnings estimate information has been the object that investors,creditors,policy makers and theorists concern and discuss.In March 2001,earnings estimate publishing was changed to voluntary publishing in China,so earnings estimate data was not the important factor influencing the IPO price any longer.According to Asymmetric Information Hypothesis,voluntary earnings estimate publishing system can be in understanding that publishers can release the information based on their own choice,so if earnings estimate has information content,it will help to reduce the information asymmetry degree under the conditions that other information is equal,thereby influencing the IPO price.In this way,IPO price can reflect the inner value of company more truly,and IPO underpricing level can be lowered down.This article closely relates to the practice of China securities market; analyzes the usefulness of voluntary earnings estimate publishing and its influence on IPO under pricing on the basis of reviewing and summing up domestic and foreign documents;selects 376 IPO companies in China Segmented A Share Market from May 2005 to December 2009 as samples,adopts software Excel and Eviews5.0,constructs a multiple linear regression model basing on the research results of traditional influence factors of IPO underpricing,introduces voluntary-published earnings estimate information variable,systematically generalizes and deeply researches the IPO-A underpricing and its influence factors in China securities market. Main contents of this article are as follows:Chapter 1 IntroductionThis chapter introduces the question being studied,background and research meaning to let the analysis of the whole article closely center around the raised question,point out the empirical research line,logic structure and research method of this article.Chapter 2 Theory reviewThis chapter traces the research method,situation and theory of IPOunderpricing.First,trace the foreign research level,including earnings estimate research and IPO underpricing theory explanation in USA and other countries.Secondly,trace the domestic research level,including earnings estimate research and IPO underpricing research in China.Finally,commentate and sum up the documents.Chapter 3 Empirical research designThis chapter is mainly to make the preparation for empirical test.It introduces the data source and sample selection used in this article first;then introduces the dependent and independent variables involved in the research,that is to explain their definitions and judge methods;at last,illustrates the construction of empirical research tools and model.Chapter 4 Empirical analysis This chapter mainly makes the empirical test.First,make a descriptivestatistic of dependent variable,fixed quantity and independent variable,analyze the rate of IPO underpricing comparatively under the conditions of active earnings estimate information publishing and passive publishing;then test the regression oftraditional influence factors of IPO underpricing;finally make comparative analysis of two models.Chapter 5 Conclusion and thinkingThis chapter draws a conclusion to the results of analysis.Empirical results show:The rate of IPO underpricing is high in China,tending to decline year byyear.At the same time,constant terms in the two models are big,determinationcoefficient is R2 small,the value of F is not big enough.This indicates that somefactors influencing the rate of IPO underpricing are not brought into the model.For China Segmented A Share Market,lot winning rate,return on net assets theyear before IPO,logarithms of financing amount and return on the market at thefirst day of issue are remarkably related to the rate of IPO underpricing.Voluntary-published earnings estimate information have an influence on IPOunderpricing.However it shows the will of IPO-A companies to publish earnings estimate information voluntarily is on the decline.