Study On The Influencing Factors Of IPO Underpricing In The GEM Based On The Perspective Of Shareholder Structure

IPO underpricing has always been a hotspot in the financial field,which is particularly prominent in China's capital markets.Up to now,there is still no unified conclusion on the IPO underpricing problem,and the explanations to the cause of the underpricing are also only the explanatory power of strong and weak points.At present,China has established a multi-level capital market,including the Motherboards,the Small and Medium-sized Boards,the Growth Enterprise Market(GEM),the New Three Board,as well as regional equity transfer market.The GEM which is aimed to service for the high-tech growth companies,plays a very important role in China's multi-level capital market.Since the GEM was established,the rate of IPO underpricing has been higher than that in developed countries and even other emerging markets.The high IPO underpricing phenomenon not only incurs a lot of speculative capital into the distribution market,resulting in a waste of social capital,which harms for resource allocation in the capital market;what is worse,improves the financing cost of the issuer in the primary market,reducing the scale of financing.In addition,the stock price drops greatly in the later period,which will bring serious harm to the investors,and affect the healthy development of the capital market and the social stability.Based on the GEM market,focusing on the shareholder structure of listed companies on GEM,this paper not only theoretically analyzes how the shareholder structure affects the listed company's IPO underpricing;what is more,uses the method of multiple regression and robustness test to analyze the correlation between large shareholder control and IPO underpricing in the GEM,the correlation between PE/VC participation and IPO underpricing in the GEM.The empirical analysis results show that there is a negative correlation between the proportion of the largest shareholder of the listed companies and the IPO underpricing rate in the GEM,the higher the proportion of the largest shareholder,the lower the level of IPO underpricing level;PE/VC participation helps to reduce the level of IPO underpricing.In addition,by the way of empirical analysis,this paper also proves that the growth of the issuer and investor enthusiasm have an important impact on the IPO underpricing in the GEM.In this regard,this paper recognizes that the rational design for the company's shareholder structure helps to reduce the IPO underpricing of the GEM companies.At the same time,this paper suggests that the following measures should be taken to reduce the IPO underpricing level in the GEM: optimizing shareholder structure,strengthening corporate governance;expanding the scale of institutional investors,strengthening supervision and Implementation;providing investment education for small and medium investors,guiding the social capital to invest in a reasonable way.