The Research About The Cause Of IPO Underpricing And Influence On Post-IPO Performance In China's A-share Market

As a stock issuance and trading places,the stock market is an important part in corporate finance and personal investment,include the issue market and circulation market.As the most important part of capital market,in the financing,the stock market allocation of resources the stock plays an important role and it can serve for the economic entity.IPO pricing is the starting point of the whole stock operation,IPO pricing will affect the stock price behavior.In the stock market,the operation of the stock can be divided into two stages:IPO(Initial Public Offerings))After IPO(After Initial Public Offerings).In the two stages,there are three abnormal phenomenon:(1)IPO underpricing phenomenon(2)long-run underperformance(3)"Hot spot" phenomenon.In this paper,study three abnormal phenomenon,Study the causes of IPO underpricing in China's a-share market,And IPO underpricing affect stock performance.Since the phenomenon of IPO underpricing was found in the 1970s,a lot of experts and scholars studied the question that IPO underpricing causes,the relationship between IPO underpricing and post-IPO return based on the efficient market theory,behavioral finance.So the IPO underpricing phenomenon is also a hot issue,but it is also a fan of capital market.IPO underpricing and post-IPO return are the all of the stock price behavior,IPO underpricing and the post-IPO return of the stock constitute the price behavior,Both of them are indispensable,there is some relationship between them?This article studies the relationship between IPO underpricing and long-run underperformance by the empirical study,and analyzes the reasons of the IPO underpricing and the long-run underperformance.In this paper summarized the status on the basis of China's stock market price behavior,From the system for issuing new shares,in China's stock market?IPO pricing system and underwriters market point of view.China's IPO system and IPO pricing system is changing.Underwriters degree of market concentration and competition and the IPO underwriting fees impact analysis of the stock market IPO underpricing,To explore the influence the cause of the high IPO underpricing in China's stock market;According to individual investors in the Chinese stock market,the characteristics of the market speculative atmosphere is too thick,Using behavioral finance and new model of supply and demand for new shares of IPO underpricing and the relationship between the performance is analyzed,For this article selected from 2005 to 2016,in China's a-share market IPO companies,using the cross section of multivariate regression method,follow three research conclusion:(1)IPO underpricing is an influencing factor of the post-IPO return,they are causal relationship;(2)The growth of public company is important factor which affect IPO market outlook long-held earnings;(3)In the factors which influence the IPO underpricing,underwriters behavior is an important influencing factors,in the process of approval IPO,regulators should pay attention to the proportion of the Stock issue.Through the theoretical analysis and empirical are confirmed,we found flaws in China's new pricing system,In view of the IPO system problems and the above three conclusions,Put forward the system for issuing new shares,the IPO pricing,and underwriters regulatory policy recommendations.