The Research On The Effects Of The Reform Of IPO System On Abnormal Initial Return

Due to historical reasons,China's stock market IPO system was not perfect in the earlier years,which leads to a series of issues of China's IPO market,abnormal initial return is one of the main problems,which seriously affected the optimal allocation of the stock's resources in China.Under the urgently request from investors,China Securities Regulatory Commission(CSRC)accelerated the reform of the IPO system to prompt market system.In 2005,CSRC made it clear that the price of IPO should be fixed through accumulated bidding enquiry.In the following years,CSCR issued serial documents to promote the Book-building reform.In the course of reformation,the influence of market gradually overwhelmed the effect of administrative intervention.Whether policies on prompting high initial return were effective? Were there changes of influencing factors on abnormal initial return? Researching on these problems can reflect the effect of the reform of the IPO system and has a strong practical significance for the next step reform as a reference.In the first chapter,this paper briefly introduced the background,research significance,methods and the structure of the paper.The second chapter reviews series of relevant theory and empirical research on IPO.The third chapter describes process of China's IPO system from following aspects: issuing pricing system,distribution system.The fourth chapter analyzes possible effect of the reform on abnormal initial return.In the fifth chapter,one-way ANOVA and the multiple linear regressing model is adopted to analyze the data which is selected from 2001 to 2016.The study found that IPO underpricing level in A-share market had improved after the implementation of the reform.Impact of public information on IPO's underpricing has a marked improvement.However,the impact of the reform on premium of IPO is uncertain,‘hot' market and excessive speculation are still serious.The suggestions are that: to stick to the market orientation for IPO issue,to promote reform toward a registration-based stock issuing system and to develop a well-regulated share market.