The Research Of The Relationship Between IPO Underpricing And Financial Indexes

IPO underpricing exist unviersally in every stock market. Large numbers of researchers have done much work in the field of the mechanism of IPO underpricing and the factors which influence the degree of IPO underpricing. As a result, they achieved a great many to explain this phenomena. But among all the results we can’t find much about the relationship between finance factors the corporation disclose and IPO underpricing. So we focus on the relationship between financial indexes the capital-raising prospectus disclose and IPO underpricing rate in this paper. We use IPO underpricing rate as the dependent variable and financial indexes which are chosen as the independent variables. At the same time we use the linear mutiple regression model as the analysis tool. The main research ideas are:The first chapter is an introduction about this paper. It includes the research background, method, content, inovation and deficiency.The second chapter is a summary of IPO underpricing and finance character. It includes the mechanism of IPO underpricing which consists of three main reasons (information asymmetry, system causation and behavioral finance). Also we introduce the ralationship between the finance characters and corporation behavior in the capital market.The third chapter is the analysis of IPO underpricing in our country. The main purpose is to find out factors which influence the IPO underpricing rate with the help of researchers all over the world. At the end of this chapter we advance adding some financial indexes into this analysis.The forth chapter is the design of empirical research. First we introduce the hypothesis of the research, and then we design the linear mutiple regression model and define the variables.The fifth chapter is analysis of the research process and result. The analysis includes the descriptive statistical analysis and test of the variables. Besides, we have also done some work to reduce the bad influence of the extreme value.The sixth chapter is the final report of the empirical research, the deficiency and the policy proposals. The proposals refer to the issuers, investors and the supervisors.