The Reseach On Influencing Factors Of IPO Underpricing Based On Data Mining Technology

IPO underpricing means the closing price on the first day is obviously higher thanthe offering price which is a widespread phenomenon existed in the global IPO market,and the especially high underpricing in our country deserves more attention. Becauseour capital market is not mature enough combined with―IPO could never fail‖,underwrites and investors don’t care about the quality of the issuing company. On onehand, underwrites will neglect their investigation-analysis capabilities and theprofessional skill won’t be improved; On the other hand, investors’ following the IPOsblindly aggravate the atmosphere of market specu lation which decreases the functionof resources allocation. Therefore, we hope to find out the reasons and solutions of thehigh underpricing in our country through theoretical analysis and analysis based ondata mining technology in order to build a stab le and efficient capital market.This paper qualitatively analyses the current situation and characteristics of IPOunderpricing according to the theory of asymmetric information, behavioral financeand issuing system, including the analysis of IPO underpr icing situation in differentissue auditing system, issuing ways, pricing ways, industries and regions and thecharacteristics of IPO underpricing currently of our country. Then the paperquantitatively analyses the influencing factors of IPO underpricing with the samplefrom July16,2009to June30,2012. The17factors are reduced combined with roughset theory and the support vector machine is used to test and verify the rationality andvalidity of the result of attribute reduction. The feasibility and practicality of datamining method are verified by the comparative analysis between results of othermethods and this paper. This paper finds that the turnover rate on the first day, the lotwinning rate, the net profit growth rate, the composite index on first day, the intervalof issuing and listing, the a ccounts receivable turnover ratio, the asset-liability ratioand the inventory turnover ratio are the main factors influencing underpricing, whichmeans the financial information such as development capacity, long-term solvency of acompany and non-financial information such as investor sentiment, the marketenvironment of listing day have significant effect on IPO underpricing. Finally, thispaper puts forward some targeted policy suggestions according to the result of study.