Investor Concern,Investor Sentiment And GEM IPO Premium

The marketization of stock issuance and trading system is one of the important directions of China’s capital market reform.During the period of approval system and examination and approval system,IPO new shares become scarce resources of Ashare market,which also leads to the phenomenon of speculation and low pricing efficiency of new shares.In order to curb speculation and improve the efficiency of IPO pricing,A-share gradually launched the registration system reform pilot,gem market as the registration system reform pilot is currently the only market from the approval system to the registration system,its reform effect has great research significance and reference value for the whole market to implement the registration system.Therefore,this paper focuses on the effect and influence of the reform of the gem registration system,aiming to provide effective reference for the reform of the whole market registration system.Based on the literature of IPO primary and secondary markets and issuance system,this paper firstly analyzes the mechanism of investor concern on IPO primary market and the influence of investor sentiment on IPO secondary market premium in theory.In the subsequent empirical analysis,the sample of new shares in gem from2017 to 2021 is used to study the impact of investor concern on IPO initial price based on stochastic frontier model in the IPO primary market,and the excess return regression model is used to analyze the impact of investor sentiment on IPO excess return in the IPO secondary market.The results show that investors’ attention in the primary market before IPO pricing intensifies the degree that IPO price exceeds its intrinsic value,and the reform of registration system weakens the influence of investors’ attention on IPO price.Investor sentiment intensifies the IPO secondary market premium.The investment sentiment of individual stocks has a greater impact on IPO excess returns than the market investor sentiment before and after the registration system reform.The reform of registration system weakens the influence of investors’ concern on IPO price and improves the efficiency of IPO pricing.The reform of registration system reduces IPO secondary market premium and weakens the impact of investor sentiment on IPO premium.In this paper,the influence of investor concern on IPO pricing in the primary market and investor sentiment on IPO excess yield in the secondary market are considered as a whole to study the influence of registration reform on IPO price.The findings of this paper support the effectiveness of registration system reform and help the capital market better serve the real economy.The innovation of this paper lies in: on the one hand is the point of view of innovation,this paper creatively and overall level of the primary market premium market pricing efficiency and the secondary market,the in-depth study as a whole,and in the process of research of investor sentiment to investor sentiment is divided into market emotions and individual stocks,respectively,to study the influence on IPO premium;On the other hand,there is innovation in the research content.Existing literature focuses on the research on the registration system of stock issuance in the Science and Technology Innovation Board,and few articles carry out comparative research on the influence of the registration system reform of the GEM.This paper studies the IPO problem of the GEM market by combining investor concerns and investor sentiment.This paper has certain theoretical significance: on the one hand,this paper expands the previous foreign literature only from the primary market or secondary market research ideas,on the other hand,this paper expands the theory of investor concern and investor sentiment.This paper also has some practical significance: First of all,from the new registration system reform is a profound change on system and distribution system,the gem as China’s capital market only implement the reform of the market in the stock market,if can’t clarify the gem registration system reform after the IPO and the driving factors behind the pricing efficiency,this will be a negative influence on the comprehensive register the;Secondly,this paper clarifies the reasons for the high IPO premium rate during the period of A-share approval system,and broadens the research perspective of China’s IPO anomaly from the two perspectives of investor concern and investor sentiment.Finally,the research of this paper proves the effectiveness of the registration system reform from improving the pricing efficiency of the primary market and restraining the "speculation" sentiment of investors in the secondary market.