Public Information And IPO Underpricing

IPO underpricing means that the initial public offering of the shares are traded on the securities market, and the first day closing price much of the secondary market is higher than a market issue price. Both in the developed countries and the developing countries, the phenomenon of IPO underpricing exits, but the level of underpricing in developing countries is higher than that of in developed countries. China’s securities market is emerging, during the transition period, the average underpricing level is higher than the mature markets in the West, which has aroused the concern of many domestic and foreign scholars. Then it means that China’s securities capital markets has with other characteristics. Middle and small board was established in China on27May2004, Middle and small plates and a high degree of underpricing is also been found there.Text of the total is divided into five chapters, each chapter reads as follows:Chapter1:This part introduces the purpose of the study, research ideas, innovation possible.So this part is the basis for the full text of foreshadowing.Chapter2:This part is the review of the Literature and Theory. It reviews the theory and literature at home and abroad on Public Information and IPO underpricing, which is the theoretical basis for this article, the research framework and assumptions.Chapter3:Based on the second part of the review of the literature and theoreticalbasis, this part combines the statistics from the listed companies in China’s middle and small plates, to discuss the dependent variable, the independent variables, the choice of control variables, data sources, modeling and other issues.Chapter4:This part is the empirical test for Public Information and IPO underprcing. This section includes descriptive statistics and regression analysis of the results. Based on the empirical results of the data analysis, this part tests the underlying assumptions in chapter3.And in accordance with the actual characteristics of middle and small companies IPO underpricing and open information,we do further analysis on the results of the empirical tests.Chapter5:This part is the summary of the article and it also give some suggestions for the future development of the companies.