Research On The Influencing Factors Of IPO Share Application Performance

IPO share application is an important way for ordinary investors to participate in the primary market, which is considered to be a high-gain but low-risk mean. With the IPO system reform, the degree of market-oriented is improved. Therefore, IPO share application is no longer a risk-free invest. It becomes more meaningful for investors to find the key to get higher yields of IPO share application. To study the IPO share application performance from the investor’s view is the innovation of this paper.First, this paper summarized the research achievements of scholars abroad for the IPO underpricing, classifying these research achievements to different category according to the different markets and information symmetry. Second, this paper also summarized the domestic literature on IPO underpricing. Thirdly, this paper analyzed and commented on the evolution of IPO system in detail. Besides, this paper did an empirical analysis on the influencing factors of IPO share application performance during three period of IPO reform after restart of IPO in July 2009. Finally, this paper made some conclusions and recommendations on investors.After theoretical as well as empirical research on the influencing factors of IPO share application, this paper finds that the changing of the IPO system has a significant impact on the IPO share application performance. Besides, with the development of the reform of IPO system, the factors of market sentiment has a more impact on the IPO share application performance than the fundamental factors of the share. In addition, the industry of the IPO share has a significant impact on the IPO share application performance.