Shareholders Structure Research And GEM IPO Underpricing

IPO underpricing phenomenon research is a hotspot in the field of finance, since theproposed has not been determined, the explanation about the cause of underpricing is onlythe explanatory power of strong and weak points, and because of market maturity and thestudy of the characteristics of the sample. Capital market in China since its establishmenthas developed countries even the envy of other emerging markets high IPO underpricingrate, obviously high IPO underpricing rate is not conducive to the healthy development ofcapital market. From the stand of pragmatism, we hope to find the cause of abnormal highIPO underpricing, enable the aircraft to the rational level to facilitate the healthysustainable development of Chinese capital market.This paper focuses on the GEM, tries to study the gem of the shareholders of listedcompanies, discusses the background of the pre-ipo shareholders characteristics and thecorrelation of the gem IPO underpricing of listed companies and using the method ofmultiple regression empirical design. Results show that the gem listed companies in ourcountry the proportion of management shareholding and significantly negatively related tothe level of IPO underpricing and management equity percentage is higher, the lower thelevel of IPO underpricing, the more the number of management equity, the lower the levelof IPO underpricing. The author thinks that the management ownership and the number ofholdings reflect the management and the relevance of the long-term interests of listedcompanies, the other shareholders wind cast later on short-term interests, managementequity ratio can reflect the company’s long-term interests game ability, management equityratio, the higher the game between management and other shareholder is dominant, thisadvantage in the end into the secondary market price influence, reduce IPO underpricing.