Research On The Influence Of IPO Underpricing Factors In Chinese A-share Market

Compared to capital markets in western developed countries,the IPO underpricing problem in Chinese A-share market is particularly serious.The deviation between the stock price and the intrinsic value of listed companies has seriously affected the value stability of the capital market.Due to the existence of IPO underpricing,it is not conducive to the allocation of resources between the two markets.The existence of IPO underpricing is not conducive to the allocation of resources among markets,leading to increased speculative risks.It is easy to cause violent fluctuations of the stock market,which is not conducive to the stability of the stock market,and also has adverse effects on the national economy.Therefore,this paper deeply studies the influencing factors of IPO first-day underpricing rate for Chinese A-share securities market,and provides reference value for the stable development of benign economy in the future.First of all,this paper sorted out the references and theoretical studies of relevant domestic and foreign scholars,focus on the two aspects of investor sentiment and underwriter reputation,and proposed the empirical hypothesis of this paper,as well as the definition and design of related data variables.Including the use of SPSS statistical measurement software to construct the investor sentiment function by principal component analysis method.In addition,This chapter also includes grouping high and low reputation rankings of underwriters' investment banks in different years.Then,this paper selects a total of 1879 listed companies from the three major sectors of China's A-share market in 2009-2018 as data sample,and establishes a multiple linear regression model to influence the IPO underpricing rate of listed companies under different time periods and different underwriters' reputation groups.Empirical results show that :(1)High investor sentiment will lead to a higher first-day IPO underpricing rate;(2)Investment bank underwriters with a higher reputation,the issue price will be more appropriate with the actual value of the company and reduce the underpricing rate;(3)The companies with better financial management quality with the higher transparency of information,and it does not need to lower the pricing to achieve the purpose of successful financing.Finally,this paper proposes summaries and policy recommendations from the perspective of collaborative development of investors,intermediaries and companies.