The Study On The Change Of Ipo Institutions And The Effect Of Ipo Underpricing

IPO under-pricing refers to the issue of the new shares'price significantly less than the closing price of the IPO's first day, and this phenomenon is known as the "mystery of new shares" for the academics. The market of IPO is not only an important part of the stock market, but also the whole basis of the stock market. The market of IPO has an important and effective help in raising funds. Many foreign researches of IPO under-pricing are mostly around the asymmetric information theory, signal theory and principal-agent theory, and the research of IPO under-pricing in China are almost in the factors of our system institutions. Through these existing studies we found that IPO under-pricing is a common phenomenon in the domestic and foreign stock markets, and the level of IPO under-pricing is relatively high to the others countries in China. As in May 2009, the Commission of China issued the "The guidance on the further reform and improve the system of the new shares issue" and the Guilin three gold issued, the academic discussed on the restart of this IPO, "The guidance on the further reform and improve the system of the new shares issue" clearly showed that we will continue to adhere with the market-oriented reform, to perfect the system of the inquiry and protect the interests of small investors.Firstly, this article stands on the existing researches of IPO under-pricing, to review the domestic and the foreign research results, and then demonstrate the background of the IPO reform in China. To analyze the relationship between the IPO under-pricing and the transaction costs based on the transaction cost theory. Secondly, the study selects the sample from 1990 to 2008, in which the initial public offering in Shanghai and Shenzhen for listed companies, the continuing changes of the securities institutions do on the IPO under-pricing regression analysis found that the trend of IPO under-pricing will to be down. Then take the IPO system reform as the background, to do packet analysis on the new shares' examination system, the mode of the issue and the pricing mechanism of the new shares, the study found that these three systems are significantly affected the IPO under-pricing. As for the higher degree of the market institutional arrangements, the IPO under-pricing is relatively lower. It indicates that the market-based IPO system reform will play a positive role in the allocation of the social resources.Finally, to make a conclusion of this study and make some policy recommendations to improve the efficiency of the IPO and reduce the IPO under-pricing. To promote the new shares' examination system to a high level of market-oriented registered system. To strengthen the financial auditing of the listed companies and improve the transparency of the informations. To enhance the professional capacity of the institutional investors and constantly improve the mechanism of the inquiry.