Research On IPO Underpricing And Its Influencing Factors

With the advent of China's reform and opening up,the capital market under the market economic system has been the rapid development,domestic scholars and investors have also attention to China's capital market IPO underpricing phenomenon.As the biggest emerging market,China also has an IPO underpricing problem,and its price suppression is more serious than that of developed countries and regions.However,high price suppression will seriously affect the stability and development of China's capital market.Nowadays,small and medium-sized enterprises in China are developing very rapidly,and these enterprises have become more and more important in China's economic development.In order to help these enterprises to develop better,China has launched small and medium-sized boards and gem boards.Since their service targets are similar and the targets are similar,many investors see no difference between the two capital markets.But the fact is not so,small and medium-sized board is compared to the gem board has the listing threshold higher,and the industry that it concerns is more extensive and so on characteristic.Therefore,this paper takes the listed companies listed in the medium and small board and the gem board as samples in 2014-2016.By comparing and analyzing the IPO underpricing rate of the two capital markets,this paper studies the reasons why the IPO underpricing in China has been affected in recent years.Based on the main research results and classical theories at home and abroad,this paper constructs an empirical model and obtains the final result through a series of statistical methods and tests.The results show that,compared with mature capital market,IPO underpricing of Chinese capital market is still too high,and the market price of gem is significantly higher than that of small and medium sized market.In addition,investor sentiment and the company's own factors are the main reasons for the IPO underpricing of smes board and gem.Second,although there are similarities between the reasons for the IPO underpricing of the two capital markets,they are different.Based on the above empirical results and analysis,this article advice from relevant improving capital market system construction,improve the professional investors,to further improve the quality of information disclosure,improve the quality of the small and medium-sized enterprises and the elimination of discrimination financial institutions for small and medium-sized enterprise aspects such as to alleviate the problem of high underpricing capital market.