A Empirical Study On Investor’s Attention Based On Baidu Index And IPO Underpricing Of Gem Market

IPO underpricing, in brief, is the difference between the market price and its initial public offering price after the new listings, and is also the performance in the share price of the information asymmetry between issuing and trading markets.In the capital market,this phenomenon is pretty universal and got the attention of scholars. Because the IPO underpricing degree directly affects the capital market allocation of resources and the stability of the market, therefore, IPO underpricing phenomenon has been the focus of the academic research. Scholars analyzed the phenomenon of IPO underpricing from different angles. In recent years, Due to the asymmetric information theory cannot fully explain the phenomenon of IPO underpricing, many investors pay close attention to the academic circles based on the theory of behavioral finance research interests. Under this background, Combined with the development of capital market in China and the high IPO underpricing phenomenon under the background of the Chinese characteristic system, this article analyzes the phenomenon of IPO underpricing from the perspective of investor attention.This article refer to the related literature of the IPO research theory and investors focused at home and abroad, realizing the growth enterprise market of our country have the characteristics of the small size, the small fame and the easing public policy.,Making the phenomenon of IPO underpricing in the growth enterprise market is more serious,in the same time, small and medium-sized investors is important in the growth enterprise market. Therefore, combining the two real conditions, This article selects the gem market as the research object, using baidu index as the proxy variable to measure investor attention and analysising the relationship between investors focus and IPO underpricing from the perspective of empirical analysis. At the same time,based on three angles of the information asymmetry,investors’sentiment and corporate growth,I choosed seven control variables,such as the offering price, a success ratea,P/Eratio of issue and so on,to establish the regression model.Focusing on investors’ attention,I analysis the influence of the gem IPO underpricing from the multiple perspectives.Besides, respectively selected the Baidu Index before the subscription and the listed to measure investors’ attention for my comparative study,and to verify that the information impacting on investors’ attention has timeliness in the securities market.Finally, through empirical analysis,there are two conclusions in this paper,the first is that when companies issuing new shares,investors’attention they gained has a significant positive correlation with the degree of IPO underpricing,and the attention before lister has a greater impact;the second is that IPO underpricing rate is lag, and the previous IPO underpricing rate can affect investors focus on the current enterprise before being listed, finally, based on the empirical regression results, I made a summary and gave some suggestions to investors,issuers and the related government department.