Empirical Research On The Impact Of Investor Sentiment On IPO Underpricing

For the new stock market in the world,IPO underpricing is a widespread phenomenon,attracting a large number of scholars to study it.This phenomenon is particularly evident in China's A-share market.With the deepening of research at home and abroad,scholars have found that behavioral finance has a significant explanatory power for the securities market vision.Therefore,based on behavioral finance,this paper will study the impact of investor sentiment and information disclosure on the degree of IPO underpricing.Information is an important factor used by traditional finance to explain IPO underpricing.Due to the existence of information asymmetry,issuers need to issue underpricing to pay for information costs.It is difficult for investors to obtain sufficient effective information for accurate valuation.IPO underpricing has formed.Investor sentiment is an important research concept in behavioral finance.Behavioral finance is based on irrational behavior and limited arbitrage assumptions,focusing on the impact of investor psychological characteristics and behavioral bias on markets and prices.Under the influence of emotions,investors are likely to overreact to IPO stocks,pushing up the price of IPO stocks and causing IPO underpricing.This paper selects 1581 IPO stocks issued and listed in Shanghai and Shenzhen Stock Exchange from January 1,2009 to December 31,2017 as a sample of empirical research.In the empirical study,investor sentiment is divided into market sentiment and individual stock sentiment.The empirical research results show that investor sentiment and information disclosure will have a significant impact on IPO underpricing,investor sentiment positively affects IPO underpricing,and information disclosure negatively affects IPO underpricing.This paper verifies that information disclosure can affect IPO underpricing by affecting individual stock sentiment through mediation effect analysis.At the same time,this paper also verifies the positive moderation effect of information disclosure on market sentiment and IPO underpricing.The higher the degree of information disclosure,the more easily market sentiment affects IPO underpricing.