Research On The Ownership Structure Of The Influence Of The IPO First-day Abnormal Returns

Because of the different developed degree, the reason and the influence factors aredifferent, too. China’s stock market start lately, the current development is not mature yet,so the IPO in many ways to western countries are quite different. In China, most of thepublic listed companies were emerged in the trend of enterprise reform, because of thelegacy factors and the imperfect characteristics, the influence of the equity structure isdifferent from western countries. Meanwhile, the problems of IPO impact the formationand changes of the equity structure.This paper, from the angle of the enterprise equity structure, is going to study theinfluence factors of the IPO excess profits. First of all, this paper briefly reviews theresearch topic all of the word, and analyzes how the equity structure influence the valueand the stock price of the company. Then, using the statistical data to descriptivelyanalyze the listed companies equity structure and the overall present situation of thepublic issuance stocks; And then is the focus of this article, adopt the empirical analysismethod to analyze the effects that the equity structure of IPO company made upon theexcess profits, the date is chose from July2009to December2010between Shanghai andShenzhen stock exchanges in publicly listed275stock enterprise data; Using statisticalanalysis and multiple regression analysis method. The conclusion explains the effectsthat equity structure of IPO companies made upon the excess profits, and the specialcharacteristics are different from the developed countries about the analysis results.In the end come to the specific conclusions: From the point of view of ownershipconcentration,(1)There is the negative correlation between the shareholding ratio of thefirst largest shareholder and the IPO First-day abnormal returns,so does the ten largestshareholders. But the five largest shareholders’ shareholding ratio has direct correlativitywith IPO First-day abnormal returns;(2)From the point of view of ownership property,circulating shares has negative correlativity with IPO First-day abnormal returns,state-owned shares has direct correlativity with IPO First-day abnormal returns,butcorporate shares has no apparent connection to IPO First-day abnormal returns.