The Relationship Between GEM After Market Risk And Underwriter Reputation、IPO Underpricing

Since established in2009, the Growth Enterprise Market has become the mostimportant way to raise capital for the small and medium-sized enterprises. For thecharacteristics of the Growth Enterprise Market, such as lower listing threshold andhigh growth rate, the risk of China growth enterprise market is more complex. Thelisted transaction time of the listing company is so short that the information disclosureand risk control has not been perfect yet. As a result, the investors are more prefer totake a wait-and-see attitude, instead of making an investment decision, which may leadto the aftermarket turnover decline and the market collapse.How to analysis theaftermarket risk for ordinary investors from so many IPO enterprises in the growthenterprise market with limited information and material in short time and finally tomake investment decision, it is the problem that we need to solve in this passage.In this paper,we made regression analysis and established a regression modelthrough the transaction data of the issuing market、 IPO characteristics and aftermarket short historical transaction data,in order to explore the relationship betweenthese variables and aftermarket risk of the growth enterprise market. We find that theIPO under-pricing is related to the aftermarket risk positively; underwriter reputation isrelated to the aftermarket risk negatively; the venture capital support is not obviouslyrelated to the aftermarket risk, but it may enhance the explanation ability of theregression model.We also find that the aftermarket risk is widely related to thecharacteristics of the IPO company.Through the regression analysis of the issuing market index and the characteristicsof IPO companies, we could explore how the factors influence the risk of the IPOcompanies in the growth enterprise market, which may provide a reference forinvestors to make risk identification and investment decision.