Correlation Research Between Information Announcement Of Intellectual Capital And IPO Underpricing

The IPO underpricing that has plagued the global market of IPO, This issue onChina’s securities market is much serious. Foreign scholars’ explanation about the“financial anomalies” mainly includes the theory of asymmetric information,ownership dispersion, information cascades flow hypothesis and hot markethypothesis and so on. In order to make clear the cause of our country’s high IPOunderpricing, Based on the foreign theories, many scholars in china got to do sometheoretical research and empirical analysis about IPO underpricing problemcombined with China’s distribution system and market data, but has not yet come tothe same conclusion. Twenty-first Century is the era of knowledge economy, moreand more enterprises has realized the intellectual capital’s importance forenterprises,especially in the information technology industry. Many investors arebeginning to pay attention to enterprise’s intellectual capital, regard it as a measureof potential indicator for enterprises’ development. So it will impact on thecompany’s share price movements. But at present the research about realationship ofintellectual capital information disclosure and IPO underpricing does not see more,this article will do a detailed analysis about intellectual capital informationdisclosure and IPO underpricing correlation on the basis of previous studies.First of all, this article puts forward the research background and significance.At thesecond part this paper relates literature to sort out and comment. Then using themethod of combining theoretical analysis and empirical test, this paper describs andanalyzes the impact of intellectual capital information disclosed on the first day ofthe IPO companies underpricing and market performance after the listing.On thetheoretical analysis, this paper do a detail analysis about intellectual capitalinformation disclosure,IPO underpricing and the relativity between them on thebasis of China’s pricing system background. Empirical test, chosing the115newlylisted companies in2006-2011, China’s IT industry for the study sample, this paperuses the content analysis method to obtain intellectual capital disclosure frequency(ICDI).And then it does a descriptionthe statistical analysis for intellectual capitaldisclosure frequency and other variables, shows that the highest intellectual capital isrelational capital disclosure frequency (RCDI), indicating that the IT industry listedcompanies pay more attention to the relational capital’s management and disclosure. On this basis, this paper uses multiple regression analysis of the samples to test thedependency between intellectual capital information disclosure and IPOunderpricing. The results show that the intellectual capital disclosure frequency andIPO underpricing is significant negative correlation and the relationship capital is themost significant. The empirical results also show that within10days after the listingmarket reaction to the intellectual capital information disclosed more fully, themarket reaction is more obvious. Finally, based on theoretical analysis and empiricalresults, From the perspective of intellectual capital disclosure, this paper putsforward some countermeasures and suggestions to improve the efficiency of IPOmarket..