Research On The Relationship Among Investor Attention,Underwriter Reputation And IPO Underpricing

The phenomenon of IPO underpricing is one of the hot issues studied by academic circles at home and abroad.The phenomenon of IPO underpricing refers to the abnormal phenomenon that the listing price of new shares in the secondary market is higher than the issuing price of new shares in the primary market.Since the launch of my country’s Growth Enterprise Market in October 2009,the average IPO underpricing rate of the first batch of 28 new stocks listed has reached 106.2%,which is much higher than that of the main board and small and medium-sized board markets in the same period,causing domestic research on IPO underpricing.Wide attention of phenomenologists.Since then,research on IPO underpricing in the ChiNext market has sprung up like bamboo shoots after a rain.Compared with the main board and the small and medium-sized market,the ChiNext market is more speculative.Most of the investors in the ChiNext market are small and medium-sized investors with large irrational factors.It is a "natural testing ground" for studying behavioral finance theories.And the companies that choose to list on the ChiNext market are mostly small and medium-sized enterprises with"two highs and three new".High risks and high returns are their important characteristics.The phenomenon of IPO underpricing in the ChiNext market is very significant.Based on this,this article also studies the phenomenon of IPO underpricing in the Growth Enterprise Market.Traditional financial theories mainly explain the phenomenon of IPO underpricing based on the theory of information asymmetry,that is,the existence of information asymmetry among the main participants in the market leads to a high degree of IPO underpricing.Behavioral finance theories that have emerged in recent years believe that investor enthusiasm,noise trading and limited investor attention are the main reasons for the high level of IPO underpricing.Most scholars explain the phenomenon of IPO underpricing from the perspective of investors or intermediaries alone.A few scholars explore the reasons for the high level of IPO underpricing in my country’s stock market from the perspective of investors and intermediaries.Investors are mostly based on investor attention and investor sentiment.Most scholars believe that as investors’ attention increases,the level of IPO underpricing will increase;investor sentiment will increase the degree of IPO underpricing.Intermediary agencies mostly start from the reputation of underwriters and accounting firms.Most scholars have concluded that as the reputation of underwriters increases,the degree of IPO underpricing will weaken;the reputation of accounting firms will inhibit IPO underpricing.However,there are very few studies on the factors affecting IPO underpricing from the perspectives of investors and underwriters.This article explores the factors affecting IPO underpricing in my country’s Growth Enterprise Market from the perspectives of investor attention and underwriter’s reputation.Realistic meaning.Based on the research samples of 477 companies listed on China’s Growth Enterprise Market from 2011 to 2019,this article reviews the research history and current status of China’s IPO underpricing,and studies investor attention and underwriting from the dual perspectives of investors and underwriters.The relationship between business reputation and IPO underpricing;the relationship between investor concern,underwriter’s reputation and IPO underpricing under the influence of different policies will be discussed in stages according to the increase restriction policy;and further analysis of investor concern and underwriting under different market conditions The relationship between commercial reputation and IPO underpricing,and finally a series of robustness tests.The study found that investor attention will significantly increase the level of IPO underpricing,and this effect is more obvious in the period after the implementation of the increase limit policy;the failure of the underwriter’s reputation mechanism has aggravated the degree of IPO underpricing;compared with low-reputation underwriters,Investors’ attention to stocks underwritten by high-reputation underwriters has a more obvious enhancement effect on IPO underpricing,and this enhancement effect is more significant in the period after the implementation of the increase restriction policy.Divide the bull and bear market state,and further expand the research found that investor attention has a positive correlation with IPO underpricing,and this positive correlation is more significant in the bull market state;the reputation of underwriters will increase the level of IPO underpricing;the reputation of underwriters will increase Enhance investors’ attention to the positive impact of IPO underpricing,and this enhancement is more significant in the state of a bull market.