Analysis Of Factors Affecting IPO Excess Returns

Raising funds through issuing new shares for listing has always been an important means of financing.Issuing new shares for listing is not only a bridge for enterprises to enter the capital market,but also an important link between a country's real economy and the capital market.A successful IPO is bound to be when the company raises enough funds to meet its own development needs.At the same time,investors who invest in new shares in the capital market can also get corresponding returns from the company's future growth and development.However,since the establishment of China's stock market,there has always been the phenomenon of excess returns after the IPO.Today,the "new undefeated myth" phenomenon is still frequently staged day after day.But at the same time,there are new shares after trading in the market often after short-term successive harden will fall into a state of long-term low phenomenon,this anomaly is not conducive to enterprise through the issuance of new shares to raise the needed capital,and is unfavorable to investors to obtain normal due returns,more conducive to China's long-term healthy development of capital market,although regulators in constant new policy,the new system in order to solve such problems,but from the perspective of the practical effect of policy implementation effect is not obvious.Therefore,it is particularly important to study and analyze why IPO excess earnings frequently appear.This article first to the IPO excess returns reason analysis related research literature review as the starting point,to many domestic and foreign scholars in the IPO excess returns formation were summarized,the research of later because our country in the aspect of system there is A certain particularity,so then the omni-directional from the capital market of our country to establish the system for issuing new shares since the reviewed,and ultimately for widespread a-share IPO after the existence of super high yield(continuous multiple harden)phenomenon,with the method of empirical analysis,to a-share listing of new shares since 2014 data as sample,Reference research theory,scholars both at home and abroad on the basis of the reference system of our country special factors,produce excess returns to possible after new listings trade through analyzing the main factors,such as underpricing in the primary market,the size of the listed companies to issue the p/e ratio,a new sector performance,market performance,etc.,at the same time considering the institutional factors into two adjacent issuance time interval as regulators attitude concerns for the IPO index,In addition,the concept of behavioral financial anchoring effect is introduced to conduct a multi-dimensional comprehensive research and analysis on the mystery of IPO premium from the aspects of primary market,secondary market,IPO system and factors of listed companies themselves.The final research results show that the IPO excess returns in China,while nearly two years to a downward trend but the overall is still in a relatively high level,the market value,issue the P/E ratio,price for the issuance of new shares listed after a period of time,and the IPO market's overall performance and time interval of two adjacent the IPO factors have a significant impact on the IPO excess returns.The innovation of this paper is that the variable of the excess return of the last IPO has a significant impact on the excess return of IPO.And the fact shows that the new shares will continue to fall until a reasonable range after the initial rise,which shows that the initial crazy rise is not reasonable,then we can solve this problem through the corresponding various aspects of policy,system adjustment.