An Empirical Investigetion Of The Effect Of Ipo Characteristics On The Subsequet SEO

In recent years,the number of IPOs and SEOs in Chinese stock market has gradually increased.According to statistics,from 2006 to 2016,a total of 1,620 companies in Chinese A-share market conducted IPOs(excluding ST-stocks,financial and real estate companies),and there were 1,063 companies which conducted SEO after the IPO.We noticed that some of these companies have a SEO in a short-term after IPOs.Between 2006 and 2016,companys whose first SEO within three years after the IPO accounted for 49% of the total number of first additional companies after the IPO.Therefore,we use the companies that have conducted SEO shortly after the IPO to investigate whether the SEO will be influenced by the company's IPO characteristics,and further analyze the impact of the SEO on the company's stock price fluctuations.This paper analyzes the companies that conducted IPOs in A-shares during2006-2016 and have a SEO in the following three years,and verified the applicability of the signal “model” theory and market feedback theory proposed by Western scholars in the Chinese stock market.We analysis whether the subsequent SEO is affected by the IPO and further analyze the impact of the SEO on the company's stock price fluctuations through the methods of logistic regression,ordinary least squares regression,event research,etc.Through analysis,this article draws the following main conclusions:(1)On Chinese stock market,SEO following IPO will indeed be affected by the IPO.(2)The signal "model" theory of IPO underpricing and the market feedback hypothesis of return after IPO put forward by western academic are not applicable to Chinese stock market.(3)Companies with less funds raised during the IPO are more likely to re-issue stocks in the short-term,but compared with IPO companies that raise more funds,they also raise less funds through SEO.(4)The efect of SEO shortly after IPO on the company's stock price volatility is positive,and which is positively related to the amount of funds raised by SEO,and is negatively related to the issuance price.