Study On Relationship Between The Micro-blog Attention And The GEM Market’s IPO Underpricing

In the age of information explosion, the media has become the main information discovery and propagation intermediary, and it is also an important channel for investors to obtain information. Because investors do not have enough ability to search for information, and if they go to search for the information they will pay a very high cost. In addition to the media, they are difficult to obtain the information of listing Corporation from other sources. Therefore, the investment decisions of investors are easily affected by the media reports, which affects the investment behavior of investors, and it ultimately affect the stock price.With the popularization of Internet, more and more investors get relevant investment information through the network media. Relying on the Internet,the micro-blog develops quickly, and it provides more convenient conditions for the spread of investment information and obtain investment information. Since 2009, China’s GEM market has been the existence of high IPO Underpricing phenomenon. Is the GEM market’s IPO Underpricing degree influenced by micro-blog media reports? Therefore, this paper based on behavioral finance theory, and selects 251 shares from 2010 October to 2014 October listing on the GEM as the sample. And search for the information of the 251 shares in Sina micro-blog to measure the attention of the media, in order to test micro-blog media reported on the effect of the gem IPO Underpricing of the listing Corporation. This study found that the GEM Listing Corporation’ micro-blog attention degree and the rate of IPO Underpricing is positively related. And Micro-blog information can influence the IPO Underpricing by investors attention path and investors sentiment path.