Research On The Impact Of Enterprise Innovation Ability On IPO Underpricing Of SSE STAR Market

The reform of registration system is a major reform of China’s capital market,and its implementation effect has a decisive impact on the development of China’s capital market in the future.The scientific innovation board has the characteristics of more market-oriented issuance pricing system and trading rules,more perfect information disclosure mechanism and more professional investors.Its listed companies’ issuance pricing in the primary market and secondary market pricing are also more effective,and it is expected to reduce IPO underpricing.However,the scientific innovation board has always had a high level of IPO underpricing since its establishment,which just provides a good environment for us to study IPO underpricing and its influencing factors.Based on the text similarity analysis,this paper constructs an enterprise innovation capability index based on the text similarity that can effectively measure the innovation capability of enterprises,explores the impact of the innovation capability of enterprises on the IPO underpricing of the science and technology innovation board,and further analyzes whether the reason for the IPO underpricing of the science and technology innovation board is the low pricing of the primary market or the overreaction of the secondary market by studying the impact of the innovation capability of enterprises on the IPO underpricing of enterprises on the science and technology innovation board.The study found that the stronger the innovation ability of the enterprises in the science and technology innovation board,the lower the IPO underpricing rate.At the same time,there is a significant positive relationship between the innovation ability of enterprises and the correlation between the IPO P/E ratio,but there is no substantial relationship between the innovation ability and the P/E ratio on the first day of listing,which indicates that the innovation ability of enterprises on the science and technology innovation board has been reasonably priced by the securities companies in the primary market,and there is no longer an overreaction problem for the innovation ability of enterprises in the secondary market.This study found that the listing of enterprises on the science and technology innovation board can be reasonably priced,and the underpricing rate of stocks is reduced.The result is that the registration system in the issuance system of the Science and Technology Innovation Board has no restrictions on the P/E ratio,and the securities companies can reasonably price the issued shares.This result provides strong evidence for the reform of the registration system in the main board market,which can reduce IPO underpricing and improve market efficiency.