Research On The Relationship Between IPO Underpricing And Government Regulation In Science And Technology Innovation Board

Compared with foreign mature capital market,IPO underpricing has been a serious phenomenon in China's stock market for a long time.IPO underpricing has been the research object of many scholars.According to the research results,IPO underpricing has not only the factors of enterprise's own operation,but also the factors of China's special national conditions.Comparing with the data of IPO underpricing rate in recent five years(2015-2019),the author finds that the average underpricing rate of Chinese enterprises listed in Shanghai and Shenzhen market is as high as 293%,while the average underpricing rate of all Chinese enterprises listed in the United States is 11.37% in the same period,which is far lower than the underpricing rate of enterprises listed in Shanghai and Shenzhen market.The data shows that the underpricing rate of enterprises operating in China is quite different when they are listed in different markets.Therefore,this paper does not consider the accounting indicators related to the operation of enterprises,but focuses on the influencing factors of underpricing from the perspective of government regulation.IPO underpricing of new shares in China has a unique background of government regulation.From issuance to listing,government regulation on price and entry has always existed.Moreover,China's new share issuance system has been changed several times,from approval system to inquiry system,and now the pilot reform of registration system.In today's turbulent market economy,although some regulations have been reformed many times,there are still some problems: first,it is difficult to form an effective market competition mechanism,and the market competition is not sufficient;second,technological innovation is slow,and the efficiency of resource allocation needs to be improved.Therefore,it is of great significance to study the relationship between IPO underpricing and government regulation in the latest pilot reform of registration system for improving theefficiency of resource allocation in the securities industry.The science and technology innovation board,which opened in July 2019,belongs to the registration system pilot plate.As of February 23,2020,89 enterprises have successfully listed on the science and technology innovation board.After the author manually calculated and deducted the influencing factors of the market on that day,the average underpricing rate of 89 enterprises is up to 133.63%,which is lower than the average underpricing rate of 206.43% of other plates' new shares listed in the same period.The comparison shows that the registration system reform can significantly reduce the IPO underpricing rate in China,but compared with the mature capital market in foreign countries,the average underpricing rate of science and technology innovation board is still high.Based on 89 IPO samples of science and technology innovation board,this paper introduces multiple linear regression model to analyze the impact of various relevant factors under the government regulation on IPO underpricing.The results show that at present,the factors of government regulation,such as IPO price earnings ratio regulation,IPO pricing regulation and IPO waiting time,have significant impact on IPO underpricing.In order to further reduce the IPO underpricing rate and give full play to the allocation efficiency of the capital market,we should advocate rational investment,continue to increase institutional participation,continue to liberalize the regulation of issuance pricing,increase a requirement to target the profits of listed enterprises,improve the delisting system,and support medium-sized underwriters to enter large-scale ones to prevent underwriters from Pricing monopoly and charging monopoly.