Research On The Impact Of The Reform Of Star Market's New Share Issuance System On IPO Underpricing

IPO underpricing exists in the stock markets of all countries in the world.IPO underpricing will lead to a large number of capital purchase and result in low utilization of capital,especially in China's A-share market.At present,scholars in various countries have made great progress in the study of IPO underpricing.Western scholars mainly study the problem from the perspective of information asymmetry and investor behavior.Chinese scholars have empirically tested the theories put forward by western scholars and found that these theories are not applicable in China.There are studies found that IPO underpricing in China is significantly related to institutional regulation and speculation of new stocks.As the experimental field of China's capital market marketization,STAR Market is changing to marketization in the reform of new share issuance system.Therefore,the study on the impact of the reform of STAR Market's new share issuance system on IPO underpricing rate is the test of the reform results of STAR Market,and is of great significance to solve the problem of high IPO underpricing rate in China by system reform,and judge the feasibility of the promotion of STAR Market system reform to the whole A-share market.The study content of this paper is the impact of the IPO underpricing rate caused by the reform of STAR Market's new share issuance system.From the perspective of supply and demand of new shares,the reform improves the supply of new shares and alleviates the imbalance between supply and demand.From the perspective of investor behavior,the reform stimulated investors to stir up speculation of new stocks and stimulated speculative bubbles.According to the theoretical analysis,this paper puts forward the empirical hypothesis,and chooses the corresponding explanatory variables for the hypothesis.In the empirical analysis,this paper selects the relevant data of 139 listed companies in the whole A-share Market from July 22,2019 to January 23,2020,and uses multiple linear regression model and fixed effect model to conduct empirical analysis on the samples.The empirical results show that:(1)the IPO underpricing rate can be significantly reduced by the reform of the issuance system of STAR Market;(2)the supply and demand of new shares has a significant impact on the IPO underpricing rate,and the supply of new shares is negatively related to the IPO underpricing rate;(3)the upsurge of investor speculation will lead to the rise of IPO underpricing rate.The study shows that the IPO underpricing phenomenon can be effectively reduced by the reform of the issuance system of STAR Market,which also means that the effect of the reform of STAR Market is remarkable.According to the empirical results,the paper puts forward the corresponding policy recommendations,which have a certain reference value for the comprehensive promotion of the reform of STAR Market to the A-share Market.