The Ipo Under-pricing Factor Analysis Of The List Company Under The Background Of Full Circulation

The problem of IPO under-pricing exists in global new stock markets universally. So far it is still a puzzle of the kingdom of finance.Many native and foreign scholars have started from many different theories and positive methods to explain this phenomenon.On April 29,2005,China Securities Regulatory Commission started the Reform Plan about Equity Capital.The core content is to find a way to solve the scale-down,transfer and circulation of state-owned shares which cannot be traded freely before,thereby realize the captical market as the afforting role factor in source dirtribution.What is the result of Reform Plan which has lasted over 3 years? Is there any influence on IPO under-pricing?Base on these questions,this article reviewed the theories of the IPO under-pricing,explaored the factors which cause the IPO underpricing and examined the IPO theories in mature market by using a database of 165 public companies from Journal 1th,2007 to December 30th,2008 on shanghai and shenzhen Ecchange in China.Basing on the past researches and the situation of full-circulation in China,this thesis selects nine factors which may influence the IPO underpricing.And then this paper has set up a linear regression model about the IPO underprcing,examined the relationship between the factors and IPO underpricing. So the existed theories about IPO can be tested on stocks market in China.At last,according to the theoretical analysis and empirical researches,the paper puts forward some proposals and gives some suggestions on the IPO pricing policy in the future. Some measures should be taken so the stock market would be mature and effective.The participators should be more reasonable to invest on market.The conclution about this thesis is that China's IPO underpricing degree is still deep,asymmetric information induced the IPO underpricing of China;underwriters fuction,institutional interests and equity structure in the IPO allocation influenced the IPO underpricing of China;there was an negative correlation between the IPO performance and the IPO underpricing of the listing companies.The suggestions is thatto stick to the market orientation for IPO issue,to enhance information supervision,to improve quality of the listing companies and to shape rightly the behaviors of the underwriters in the stock market of China.