Investor Sentiment,IPO Oversubscription And Underpricing

IPO has always been the focus of domestic and foreign scholars.An initial public offering priced significantly below the initial public offering price is called an IPO underpricing.When underpricing occurs,existing shareholders may suffer losses,while new shareholders may get higher remuneration.Compared with other countries in the world,IPO underpricing in China is obviously very high.Compared with the main board and the small and medium-sized board,due to its obvious difference in nature,the gem has a high ipo underpricing range for a long time,which will be very unfavorable to the healthy development of the capital market and national economy.Therefore,it is of great importance to analyze the causes of IPO underpricing and take corresponding measures to curb the phenomenon and promote the stable development of the capital market.the gem.The underpricing rate of the gem has been very high since it was launched.At the same time,the ipo financing also has the problem of overoffering.There are many influencing factors.This paper is divided into three parts: theoretical part,data selection and model construction and relevant empirical analysis.This paper sorts out the relevant literature on IPO underpricing at home and abroad,focusing on two aspects: investor sentiment and new stock over-raising,and studies how these two aspects affect IPO underpricing and the impact of their combined effect on IPO underpricing.In the process of research,through the literature summary,put forward the research hypothesis of the article.The article selects the IPO first-day excess return to measure the degree of IPO underpricing;Select the ratio of ipo overoffering to measure ipo overoffering;Four representative variables that can reflect market sentiment are selected to obtain the comprehensive proxy index of investor sentiment index.This paper takes a total of 691 gem companies listed and issued between October 2009 and June 2018 as research samples,and the sample time span is relatively complete.At the same time,KMO and Bartlett sphericity tests are carried out on the selected proxy variables.According to the test results,it is indicated that the selected variables are suitable for principal component analysis.Therefore,Therefore,principal component analysis is used to construct an index of comprehensive investor sentiment.From the Perspective of Investor behavior,this paper uses an appropriate model to study the impact of investor sentiment,overoffering of new shares and their interaction on IPO underpricing.This paper draws the following conclusions: first,there is a positive correlation between investor sentiment and ipo overoffering,that is,the higher investor sentiment is,the higher ipo overoffering will be.Second,investor sentiment is positively correlated with IPO underpricing,that is,blind confidence of investors will drive up the stock price and thus lead to high underpricing.Third,IPO overoffering is negatively correlated with IPO underpricing,and hypersonic offering will reduce the underpricing rate.Fourthly,investor sentiment and whether seriously overoffering have significant positive influence on IPO underpricing.According to the conclusion drawn from the article,this paper put forward corresponding policy Suggestions from investors,the government and so on.