The Study On IPO Underpricing For Chinese Listed Companies

The IPO market,as an important part of stock markets,has been received much public attention.Scholars found that IPO underpricing is a common phenomenon in the worldwide stock markets,but the underpricing degree of our country is obviously higher than other countries.Therefore,this paper uses the data of listed companies Shanghai and Shenzhen stock markets during 1991-2015,to study on the feature and the influencing factors of IPO underpricing in the context of system with Chinese characteristics.Expected to provide suggestions for the further development of stock market,and promote the development become more quuitable and efficient.Firstly,we sort out the evolution of our IPO system from the perspective of government regulation,pricing and distribution methods.Secondly,by researching samples in different periods,different plates and different classification systems,we have found the following conclusions:(1)IPO underpricing is a common phenomenon in China's listed companies.(2)IPO underpricing gradually decline with the IPO regulatory system become more market-oriented.Different format has different IPO underpricing degree.(3)In terms of IPO underpricing,there has no significant difference among diverse plates Finally,we establish a model including many variables,such as the first day returns?underwriter reputation?financing scale and so on.Through the multiple linear regression,we found that the theory of winners curse and investor sentiment could explain the IPO underpricing,but the underwriter reputation theory and signal theory couldn't do that.Furthermore,the IPO system affects the IPO underpricing to a large extent.,and the IPO underpricing shows a tendency to decreased with the development of the system.