Network Attention On IPO Underpricing In China's Growth Enterprise Market

The initial public offering(IPO)is one of the most important financial indicators of a listed company.It is also one of the basic ways for the company to enter the capital market.The IPO greatly affects the efficiency of resource allocation in the market and can help the company Financing also enhances corporate image and visibility.However,in China's stock market,there is a strange phenomenon of high IPO underpricing.For this abnormal situation,various scholars have studied and analyzed from various angles,but some traditional theories are not completely This paper explains the reasons for the strangeness of China's capital market.Therefore,this paper will study the influence of long-term and short-term network attention on the IPO underpricing phenomenon from the perspective of network attention and the development of China's GEM market.This article uses investor attention and media coverage of the two targets as a reference indicator of network attention.First of all,investor attention is also the attraction of stocks to investors.It can also be said that investors' attention.This kind of mutual reaction can lead to stock price changes.At this stage,the network is full of various listed companies.Information greatly affects the attention of investors.Secondly,as a medium for information transmission,the media can convey information about listed companies to investors from all angles.In China's GEM,individual investors account for a large proportion.Considering this factor,investors can be considered more dependent on the information searched on the Internet,which will have a certain effect on the GEM market.IPO underpricing more obvious.In summary,this paper selects the GEM market as the research object,and establishes a new IPO underpricing calculation method.The Baidu index is used to measure the investor's attention.The short-term and short-term measures are used to measure the information of listed companies one week before and one year before the listing.Media reports,using multiple linear regression analysis methods,multi-angle analysis of the impact of network attention on IPO underpricing in China's growth market.Through empirical analysis of the market data of the GEM,this paper draws the following conclusions: First,the network attention can really affect the IPO underpricing;second,the short-term network attention is more than the long-term network attention to the IPO underpricing.The impact is even greater.Based on the above conclusions,the corresponding policy recommendations are given.First of all,we must cultivate investors to improve professionalism.Secondly,we must regulate the media release mechanism in terms of policies.Finally,we need to improve the relevant systems of the capital market.