Empirical Research Of Ipo Underpricing In Sme Market

In recent decades, the domestic and foreign researchers have conducted a large number of studies, including the phenomenon of IPO underpricing. In China, IPO underpricing is more serious than in Western developed countries, which is related to the lack of efficient operating mechanism and some specific historical factors.In this paper, I make a research of IPO underpricing in SME market. In accordance with the stock market, we select the issue size, the interval between the listing date and issue date, lotrate and PE to reflect the first market factor, and the first day of IPO turnover and the market index to reflect the second market factor. To put the tradable share reform as a cutoff point, I make a comparative analysis of explanatory variables on the rate of IPO underpricing level and find that the first day of IPO turnover and the market index are the main factors pre-split share structure reform, but PE, interval and market index are the main factors after the split share reform. Next, I introduce asset-liability ratio and underwriter reputation to improve the second model and find that underwriter reputation and IPO underpricing is negatively correlated, different from the finding of domestic research results, but consistent with the conclusions of the study abroad. Finally, based on the finding, this paper puts forward several policy recommendations.