Research On The Information Efficiency Of IPO In Chinese Growth Enterprise Market

The launch of the GEM provides an important funding opportunity for the high-growthsmall and medium enterprises. Because the GEM issuance system is imperfect and theGEM market at this stage is very special, the IPO pricing has an irrational result. The mostprominent is the “high-three issuances” problem. Besides, IPO pricing is a core part of the stockissuance, pricing efficiency will directly affect the efficiency of resource allocation to themarket. IPO pricing efficiency has always been the focus of theoretical research.First of all, this thesis sorts the theories of IPO pricing efficiency at home and abroad.On the basis of the results of previous researches, it redefines the IPO efficiency. IPO pricingefficiency is divided into three levels by chronological order, the information efficiency, the yieldof the first day listed and long-term performance compared to the market. From a practical point,then it presents and explains the “three-high” problem of the GEM IPO. On the onehand, the characteristics of GEM companies increase the difficulty of IPO pricing greatly. On theother hand, through the analysis of the optimal behavior strategies of participants in the GEM IPOprocess, we find that they have incentives to make IPO price deviates from the internality value.Further part is the empirical study part of this thesis. Through the inspection of the IPO pricing’sreflection on a variety of determine factors, we can learn the information efficiency of the GEMIPO pricing. The regression analysis shows that the fit of the issue price to all the internal andexternal information is not ideal, and the pricing efficiency remains to be improved.Finally, associated with the results of empirical study, it puts forward some specific policyproposals to the problems in GEM IPO, to improve the GEM issuance system, and promote thelong-term healthy development of the Growth Enterprise Market.