Comparative Analysis Of The Initial Public Offering Efficiency In Different Issuing System Of New Shares

IPO efficiency has been one of the important research field of economicsand finance. Due to1970s, foreign scholars began studying the IPO inefficientphenomenon that called phenomenon of excess returns of new shares andhave made great achievements. Foreign scholars mainly explained thephenomenon of excess returns of new shares from the information economics,game theory and behavior finance, domestic scholars mainly using foreignscholars theory for empirical research, but theory exploring phenomenon ofexcess returns of new shares from institutional factors is rare.The author Sorted and summarizesread domestic and foreign works ofIPO excess return, analysis factors that influenced IPO efficiency, found almostno scholar analysize the IPO efficiency from the system perspective.Thispaper compares the institutional factors into the IPO efficiency research field,discusses the initial public offering efficiency in different issuing system of newshares. First of all,the author uses the excess returns of new shares as ameasure of IPO efficiency, mainly through comparing the excess return indifferent issuance system of new shares to compare IPO efficiency in differentissuing system of new shares. This article discussed history evolution processof the IPO regulatory system, the way of issuing new shares and the IPOpricing mechanism, which were three aspects of issuance system of newshares, and then made evaluation on specific institutional improvement. Next,the author simplified the IPO subject to both sides of the dynamic evolutionarygame of investors and distribution companies, and obtained the issuance ofsystem of three pricing strategy equilibrium, discussed the conditions to reacheach equilibrium and outcome of each equilibrium,and compared theefficiency of them. Then the author discussed which equilibrium specificinstitutional change process can realize,and compared the efficiency of thepricing strategy equilibrium that institutional change process reached. Again,the author used IPO shares during1996to August2010as a sample, usedSPSS software system to make analysis of variance and multiple comparisonon IPO efficiency in different issuing system of new shares.This paper usinginvestors and distribution company two sides game model to analyze the IPOissuance of subject system process for new pricing actions and their influence.In this paper the main conclusions are as follows:(1) IPO system pricingstrategy equilibriums are pooling equilibrium of low quotation, poolingequilibrium of high quotation and separation equilibrium. IPO regulatory system can reach pooling equilibrium of low quotation, the channel system canreach pooling equilibrium of high quotation, the sponsor system can reachseparation equilibrium, and the evolution of the system makes the IPOefficiency higher and higher, that means our state’s IPO system evolutestowards a more efficient way.(2) From the results of the statistics tests, theauthor found, IPO efficiency is different in different issuing system of newshares.The evolution of IPO system make the IPO efficiency higher and higher,which was notable in the test of the evolution of the IPO regulatory system,however, the effects of the way of issuing new shares and the IPO pricingmechanism on the IPO efficiency were not particularly remarkable.