Intrenal Control Information Disclosure、Investor Sentiment And IPO Underpricing

IPO underpricing as a ubiquitous phenomenon on the capital market, it received wide attention of scholars both at home and abroad in recent years. Early scholars defined the low stock price in the primary market as the main reason for the IPO underpricing. With the development of behavioral finance, the scholars’ research direction has changed to the secondary market. They think the stock price is vulnerable to the influence of the secondary market investor sentiment. Besides, 2015 is an important year in the process of our country’s capital market reform. The stock offering registration system is forthcoming, which has existed in the government work report for two consecutive years. Under the registration system, information disclosure is the core of the safeguard. The good internal control information disclosure is a “good news” for investors, and this "good news" will inevitably lead to lower stock bid-offer spread and reduce the rate of IPO underpricing.This paper based on the unique capital market environment in our country, and chooses 406 IPO companies since October 30, 2009 to December 31, 2014 in the gem as research samples. Based on the study of the scholars at home and abroad, this paper adopts the combination of theory and empirical methods, research the relations of the internal control information disclosure, the investor sentiment and the IPO underpricing. The results show that the internal control information disclosure will negatively influence on IPO underpricing, but the impact is not significant; while investor sentiment will significantly positive influence on IPO underpricing rate. In addition, the investor sentiment will weaken the effect of internal control information disclosure, that is to say, the investor sentiment will restrain the negative correlation relationship between the internal control information disclosure and the IPO underpricing.This article is divided into five parts. The first part introduces the background, the significance, the framework, the method and the innovation. The second part is the literature review of domestic and foreign scholars about the internal control information disclosure, the investor sentiment and the IPO underpricing. The third part is the theoretical logical analysis of the internal control information disclosure, the investor sentiment and the IPO underpricing, and lays a foundation for the empirical analysis later. The fourth part selects the IPO companies in the gem to do the empirical analysis to verify the hypothesis that are put forward above, including descriptive statistics analysis, correlation analysis, multiple linear regression, and robustness test. The fifth part is the conclusions and recommendations. On the one hand, through the theory and empirical analysis above, we can get the relationship of the internal control information disclosure, the investor sentiment and the IPO underpricing. On the other hand, based on the theory of signal transmission, information asymmetry and the behavioral finance, this paper put forward the “quaternary” suggestions aim at the primary market and secondary market to improve the gem even the whole capital market of China.