Research On IPO Pricing Efficiency Of Listed Banks

With the pace of financial reform continuing to accelerate,the pace of commercial banks reform are also in full swing. More and more commercial banks will be listed by way of improving the core competitiveness and the corporate governance structure. However, there is a widespread phenomenon of low pricing efficiency, which has a series of negative effects on stock market, participants as well as the economic development of whole country. To explain this phenomenon, many scholars have carried out research and analysis. The price’s efficiency of Listing Corporation IPO is determined by the way of analyzing the impact of different factors on the issue price of new shares. If the impact is significant, we can say the price of IPO is well-grounded, reasonable and efficient. The standard of IPO pricing efficiency is essentially the analysis of various factors affecting the price of IPO and the relevance of the issue price, which is a relatively efficient standard.Firstly, this paper review of relevant research at home and abroad and analyzes the concepts of pricing efficiency, the influencing factors of stock pricing as well as the research methods. Secondly, we summarizes the basic theory of the stock market and pricing method,and compares the advantages and disadvantages of various theories and methods in detail, to lay a solid theoretical foundation for empirical analysis of this paper. And then through the analysis, the impact of IPO pricing may be divided into two categories, namely, internal factors and external factors. Internal factor is the sum of the various element that reflect the company quality and growth prospects.External factor refer to the environment that affects the whole company normal operating state. The latter do not directly reflect the continued profitability, but it does affect the various cases of IPO pricing judgments. In the empirical analysis, firstly, use the adjust IPO rate to descriptive statistical analysis.then, we research the factors affecting the pricing of bank listing Corporation IPO by the relative efficiency of the standard. We select 13 explanatory variables, and use the multi-factor pricing model to analyze the data of the Listed Banks, and use Stata software to analyze the data that were analyzed by step wise regression analysis, and the effective linear equation was established and based on the economic test, multiple linear regression coefficient test, significant test to analysis the final results. Finally, Based on the comparative analysis of the results and theconclusions of the study, we give the final policy recommendations.