The Research Of The IPO Underpricing Phenomenon On The Small And Medium-sized Enterprise Board

SMEs are an important part of China’s socialist market economy, in the past few decades, has made a great contribution to the stable development of China’s rapid economic。But,at the same time, there is a greater limitations on the financial services for SMEs, which is not so match to its statu on china’s economic, and this situation also largely restrict the further development of the SMEs themselves. So far the most important financing channels for SMEs is still banks, but there are a lot of contradictions between the characteristics of the production and operation of SMEs with access to bank loans requirements:SMEs which are in the start-up and growth stage, many uncertainties in the course of business, larger business sustainability risks, market response capacity and self-financing capacity is weak, loan demand period is longer when compared to the large enterprises,so the financing needs for SEMs increased significantly. However, for the bank, SMEs have many limitations, and they are generally difficult to achieve the requirements of the bank loans, SME financing has not been able to break through the constraints of gaining access to financial services. Especially in recent years, with the tightening of liquidity in the market as well as inflationary pressures continue to increase, SMEs financial tensions general increase in, financing costs continue to increase,profit margins squeezed further. The introduction of small plates provides a new financing platform for small and medium-sized enterprises, which is changing the capital structure of SMEs. Looking at the domestic and international capital markets, however, the issue of enterprise application through the open market, there is widespread phenomenon of IPO underpricing, on the secondary market, investors can often obtain excess returns in the IPO first day.IPO underpricing is prevalent in the capital markets of the various countries, but because of the particularity of the Chinese capital market, China’s IPO underpricing is significantly higher when compared to other countries. Since the launch of the small plates in2004, there are also widespread phenomenon of IPO underpricing in small plates listed companies. Before the split share reform in2006, the stocks of these companies are mostly non-circulation type, only a little proportion of the the outstanding shares is through initial public offering, non-tradable shares trading is basically through the way of transfer agreement, due to the agreement transaction price is much lower than the price in the secondary market, the interests of outstanding shares investors tend to damage. First, the existing domestic and international research review and analysis of small plates the corresponding system including the system of issuance of new shares of small plates, followed by statistical methods to analyze the existence of small board market forward to the IPO underpricing phenomenon, as well as small and medium-sized enterprise board IPO underpricing correlation with the market environment. And in previous studies from the angle of the SMEs in the value of their own, the market environment and risks analysis of its relationship with the IPO underpricing, through a statistical method to analyze the existence of small plates on the market with IPO underpricing phenomenon With the basis of previous studies, to the2004-2012small and mid-enterprise board’s IPO companies as samples, the data is divided into before and after Non-tradable Shares Reform, respectively, using a multivariate linear model split share structure reform on small and mid-enterprise board’s IPO underpricing empirical analysis. Trying to explain the factors that affect small and mid-enterprise board’s IPO underpricing, mainly for small and medium-sized enterprise board their own value, the market environment, as well as risks.Through theoretical, statistical analysis and regression analysis we can find that:(1) The small plates exist IPO underpricing;(2) Market environment does affect IPO underpricing phenomenon of small plates, good market environment, Small and mid-enterprise board’s IPO underpricing in the market environment is not good when a lower small plates IPO underpricing;(3)The average level of IPO underpricing in small plates before and after the share reform is almost the same,but the main factors affected the IPO underpricing level is different. In the success rate is an important manifestation of the market environment, and its also the main reason for high IPO underpricing level in China. This article ultimately concludes:With the the completion of split share structure reform, the small plates IPO underpricing is improved, the market continues to tend to mature, the investment decisions of investors continue to become more rational.