| Initial Public Offering (IPO) allows the company for the first time by underwriters and other intermediaries in the stock market, and thus the process of becoming a public company. There are two ways to enterprises in the initial establishment of only a handful of shareholders, with the expansion of business scale, companies need to obtain from external funding, access to capital, equity financing, bond financing. The higher cost of debt financing, and the need to repay, so in the development of the companies prefer to finance through equity.First, the research background and significanceSince China’s first stock exchange in Shanghai Stock Exchange officially began operations on December19,1990, China’s capital market has been running for20years. Over the years, China’s capital market has been a great deal of development, only14stocks from the start of the A-share listing transactions, developed to include multiple levels of A shares, B shares, small board and GEM over two thousand listed and traded; development subject of the transaction from the initial stock to stocks, bonds, warrants, funds and other trading products, and various varieties below contain more than one category; market participants, mainly to fund development from the beginning of a single retail groups of a variety of interest groups, companies, social security funds, insurance companies, brokerage firms, QFII (Qualified Domestic Institutional Investor) and other institutional investors based; the total scale of the stock market from the development of10.919billion yuan in1991to the end of2012listed companies of2494, more than140million accounts, with a total market capitalization of23trillion yuan the stock float market capitalization of18.1trillion yuan, the market value has surpassed Japan, the second highest in the world.In the process of development of the capital market recent20years, it is very important that it is uninterrupted growth as the market regulatory issue, trading system reform, progress and improvement, especially in the reform process of the stock distribution system, has caused many market the attention of the participants as well as researchers. This is because the stock issuance and listing of financing the basic functions of the capital market, the issue of the listing regime is good or bad you can reflect the level of a country’s capital market efficiency.Accordance with the theory of the classical finance, risk is positively correlated with income, which means that the greater the income, the greater the risk, it is not possible without the risk of revenue, so reasonable, should not be listed on the pricing of the stock after the transaction, on the first day of the phenomenon of excess returns. In practice, however, the stock market of many countries of the world there are different degrees of excess returns on the first day phenomenon.As early as in the1960s, there are foreign researchers obtained through empirical analysis IPO on the first day of the yield significantly positive phenomenon, that IPOs on the first day’s closing price is higher than the pricing of the issue of new shares, a phenomenon known as IPO underpricing, the standard measure of the size of the first day of yield, or called underpricing is calculated by the ratio of the first day closing price divided by the issue price minus1. New shares yield can be shown that the efficiency of the EPO pricing, yield the closer to0, the higher the pricing efficiency, on the contrary, the new shares yield is much larger than0or less than0, it means that the issue price of the primary market and secondary the transaction price in the market there are significant differences, the lower the efficiency of the pricing. Foreign market shares on the first day yield is generally about10%.China in the securities market a few years after the establishment of new shares yield has been at a very high level, early studies have shown that from1992to1999, the first day of China’s securities market yield more than140%, such a high rate of return clearly shows there is a considerable difference between the secondary market price performance of China’s securities market.However, in recent years, especially since2010, China’s IPO market, there has been another phenomenon that repeatedly break damp IPO. Until December31,2011, the A-share market in2011there were277newly listed companies to raise funds totaling more than40billion U.S. dollars. In2011, the first day of IPO break the number of companies increased to77, far more than26in2010.192new listed companies annual break.2011, the first day of break ratio of27.79%(7.45%in2010).2011new large area break, a lot of people are classified as IPO "three high", the high issue price, high price-earnings ratio, and high amount of capital raisings. Break is good or bad? Some people think that break China’s stock market investors are more rational, to further reduce the speculative element is a sign of progress in China’s stock market, China’s stock market to mature and performance.Why China’s IPO market there will be such a huge change? What is the decisive factor of the IPO pricing and secondary market trading price difference? Analysis of these issues will undoubtedly of great significance to the issue of pricing system awareness and improve China’s capital market IPO.Second, the thesis content and viewsThis article from the IPO system start, the use of means of empirical analysis to analyze the main factors of the new shares on the first day yield, analysis of IPO pricing level of efficiency, the main contents of the framework are as follows:Chapter1is the introduction of this paper introduces the research background and significance and research ideas, the research methods and research contributions and shortcomings.Chapter2is a literature review on the IPO break points the foreign and domestic overview of the relevant literature on the break and the main theoretical perspectives and empirical results.Chapter3reviews related to the stock price and the IPO pricing theory, accounting information validity (ie financial information on stock prices), and behavioral finance theory (market participants break IPO).Chapter4comparison of several of the major international IPO Offering pricing mechanism, and a review of the historical changes of the IPO mechanism, the reform process.Chapter5is a core part of this article, according to the research ideas of the text, using descriptive analysis and empirical analysis (analysis of variance, regression analysis, factor analysis, etc.) statistical methods, to extract the main factors that affect the IPO break.Chapter6is the full text of the conclusions and recommendations made for our break.Third, the paper’s main contribution and deficiencies I grasp literature, domestic IPO pricing rationality on research are high in the IPO underpricing based on discussions. Only appeared in recent years, a large area of the break new phenomenon, therefore, domestic scholars break phenomena is relatively small. I found that the average business break issue price is much higher than the average corporate break issue price and the issue price of new shares after2010was significantly higher than in previous years, the high prices may lead to a large number of shares break a big factor. Finally, a large area of our country how to avoid the phenomenon of IPO break suggestions. This deficiency is that, for some indicators may not be reasonable deal, such as "audit firm" this indicator, only consider whether the four major international differences, resulting in one group of inadequate sample size. There are some data might be missing empirical results have a certain impact. |
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