Research On The Effect Of Wealth Transfer In Initial Public Offerings

Chinese stock market after 20 years of development, has made brilliant achievements. Based on the IPO from 2009 to 2014 in Shanghai and Shenzhen A shares as the sample,study IPO pricing effect on pricing level factors and economic consequences.The existing academic literature about IPO is focused on the three "vision to IPO underpricing as the core".The study did not look at the problem from the perspective of interests mechanism. Emphasis on the technical level, ignoring the system level; pay attention to efficiency, ignoring fairness. However, in the issue price is higher than the pre IPO net assets per share, that is, the issue before the city net rate is greater than 1, because the premium part shared by all shareholders, it will cause the wealth from the new shareholders to old shareholders. High prices in the issue of new shares, the new shareholders to lose, that is the old shareholders income; the higher the price, the more serious the wealth transfer effect. So, the old shareholders have enough momentum through earnings management, hiring high reputation intermediary, try various devices to raise over pricing, financing, capital ultra short-term consequences then appears, and raised for the project change, performance decline, long-term consequences of financial conservatism.This paper discusses the particularity of IPO financing, draw lessons from and Study on improvement method of refinancing wealth transfer effect, analysis of the issue of new shares in the wealth transfer effect measure based on "the issue before the city net rate", combined with the market timing theory, study the market valuation, investors irrational and IPO deal for wealth transfer effect, and the relationship between the wealth transfer effect and long-term performance of IPO. IPO company is from 2009 to 2014 in Shanghai and Shenzhen A shares of the sample period, but focus on the implementation of the new 2014.The study found that the effect of wealth transfer, the apparent difference in the different sector of the market is not, IPO after the implementation of the new deal is decreased; in investor sentiment and wealth transfer effect of total subscription ratio reflects the significant negative correlation; intermediaries can inhibit the wealth through charge transfer effect. On the other hand, when the wealth transfer effect is stronger when the measure, in any case, the changes of ROE before and after the listing is bigger, but the debt to asset ratio fell more, increase the proportion of cash is more. That is, the performance decline, financial conservatism and wealth transfer effect significant positive correlation.The stock market of our country is preparing for the registration system reform. This paper studies the appropriate. This paper is a preliminary attempt because fairness perspective based on IPO, it is inevitable to have various limitations, mainly as follows: some can be related to the theme has not been involved, such as the impact of earnings management, alteration and other consequences; in has been involved in theme is fine enough, such as the issuing costs did not make the distinction between.