IPO Pricing Efficiency In Registration Period

For a long time,the performance of the stock and the development of the stock market has been the focus of attention.In recent years,the phenomenon of new shares falling below the issue price appears frequently in the stock market,and the reasons are worth investigating deeply.In order to stabilize China’s securities market and protect the interests of issuers,underwriters and investors,it is of great significance to strengthen the studies on the initial performance of IPO and the efficiency of IPO pricing.Therefore,this paper will study IPO pricing efficiency by examining the information reflected by IPO breaking phenomenon and IPO pricing behavior in China in the past three years.According to the standard to measure the efficiency of IPO pricing,starting from the four core perspectives of issuance,investor sentiment,company attributes and market prices,the paper takes the stocks of companies listed between July 1,2019 and April 15,2019 as sample sources,using Logistic regression model and multiple regression model.This paper empirically studies the cause of IPO breaking and IPO pricing efficiency in the period of registration system.Logistic regression results show that the rise and fall on the first day of listing is negatively correlated with the probability of IPO break,the larger the index value is,the less likely the stock to break;The four indicators,such as issuance fee,oversubscription ratio,turnover rate on the first day of listing and company size,are positively correlated with the probability of IPO break,and the higher the index value is,the higher the probability of IPO break.The results of multiple regression show that in the past three years,the IPO pricing of breaking stocks in China reflects the information of four indicators,such as issue price,issue scale,turnover rate on the first day of listing and return on net assets,among which the issue price and issue scale are positively correlated with the degree of breaking,but negatively correlated with IPO pricing efficiency.The turnover rate and roe on the first day of listing are negatively correlated with the degree of IPO break,and positively correlated with IPO pricing efficiency.According to the results of the model,the paper analyzes the ways and degree of the impact of each index on IPO pricing efficiency,and finally puts forward specific suggestions for the securities market regulators,listed companies,underwriters and investors.Reasonable and effective research and regulation of stock market performance and breakout phenomenon is crucial.China’s IPO market should finally reach the following situation: there must be sufficient game among issuers,underwriters and investors,and all aspects must achieve reasonable and mutual checks and balances,so that the three can coexist in harmony.