The Measurement Of The IPO Pricing Adjustment Behavior Based On The Multiple Participators

Chinese IPO market restarted IPO issuing in2009. However, the complexrelationship among issuers, underwriters and investors makes new problems occurred inthe stock market. A more important aspect is summarized in this paper after the allaspects which influence the IPO pricing being combined, that is participator’s behaviorinfluencing the IPO pricing adjustment. Therefore, this paper puts forward the theoriesabout the participators influencing the IPO pricing adjustment, and analyzes how themultiple participators influence the IPO pricing adjustment.This paper defines the concept of degree and volatility of the IPO pricingadjustment behavior. This research is based on the data total460from June2009toApril2009. This paper finds that the degree of the IPO pricing adjustment is very larger,but volatility is relatively stable, especially in the different time, the different industries,and the different underwriters, the margin and volatility are different respectively.Then, the further research is given which factors and how influence the IPO pricingadjustment in this paper. Finally,11variables are determined on the influencing factorsof the margin. Innovatively, the degree of institutional investors’ information extractionand the degree of individual investors’information extraction are proposed in this paper.The influence of IPO pricing adjustment is analyzed based on the two variables.This paper integrates the complicated relationship of participators to the IPOpricing adjustment behavior, and makes the empirical study between the degree ofinvestors’ information extraction and other indicators. The empirical results show thatunderwriter reputation mechanism could improve the quality of the stocks, the stabilityof the Chinese stock market and increase the confidence in the stock market. At thesame time, the information disclosure system should strengthen on the authenticity andthe totality of information, which could promote investors more rational decisions. Inaddition, the stock market reforms should give more rights and freedoms to investors inparticipating the IPO pricing adjustment. The government should deregulate graduallyand more guide and manage.