An Empirical Analysis Of The Underpricing Of Initial Public Offerings In Chinese Securities Market

IPO, also known as initial public offerings, is that the company is the first public sale of shares to the public for raising equity capital for investment, with the help of intermediaries, such as in investment banks, the stock market. IPO underpricing is referring to that the price of new shares was significantly lower than the price listed on the first day of secondary market closing price of the phenomenon.According to efficient market theory, an efficient capital market, the correct information of goods can fully reflect the current market price, the intrinsic value of the stock determines the price of the stock on the stock's IPO price should reflect the intrinsic value of the stock, with two class the first day of the closing market price consistent. However, many domestic and international scholars and empirical results demonstrate. IPO underpricing is a national common phenomenon in the stock market; stock markets are the countries there are different levels of IPO underpricing the issue of new shares.In this paper, I select 2111 listed companies issuing new shares from December 1990 to December 2010 as sample for in-depth analysis of listed companies in China IPO underpricing, and explore the reasons for its formation and its impact factors. This study will not only enrich the existing theories on IPO underpricing hypothesis, but also can improve the underpricing of IPO's policy to provide advice and learn, to improve the operation of listed company's capital level, more effectively and share buybacks Interest in the role of coordination structure, improve corporate governance and enrich the connotation of China's capital market will have greater theoretical and practical significance, we more fully understand the IPO underpricing of help.This article was divided into six parts.The first part is the introduction. IPO underpricing described the research background, significance, the main method and content, and study the possibility of innovation.The second part is the rate of IPO underpricing theories of foreign and domestic related literature review.The third part is the IPO of China's securities market pricing mechanism in the historical process. Introducing the new pricing mechanism for investment and main issue, review the pricing mechanism reform of domestic IPO process.The fourth part is the study design, data and model settings. From the data sources, data selection, data description to describe the process of data selection, and then set the model, including variable definitions and methods of selection. The fifth part is the empirical results and analysis. According to the selected data and models, descriptive analysis and empirical results obtained by regression on the proposed research hypotheses were tested and analyzed.Part VI is the conclusion. Summary conclusions of this study, make relevant recommendations, and points out the shortcomings and future research directions.