AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010)

Abstract This study provides an empirical analysis of the control variables of the IPO underpricing phenomenon in new environment of China market. Applying multi regression through Stata 11, a simple comprises 677 companies, which issued and listed their A shares on Shenzhen Stock Exchange and Sha...

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Main Author:	meng, wei
Format:	Dissertation (University of Nottingham only)
Language:	English
Published:	2011
Subjects:	IPO underpricing phenomenon control variable brand new market
Online Access:	https://eprints.nottingham.ac.uk/25290/

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author	meng, wei
author_facet	meng, wei
author_sort	meng, wei
building	Nottingham Research Data Repository
collection	Online Access
description	Abstract This study provides an empirical analysis of the control variables of the IPO underpricing phenomenon in new environment of China market. Applying multi regression through Stata 11, a simple comprises 677 companies, which issued and listed their A shares on Shenzhen Stock Exchange and Shanghai Stock Exchange are collected from 2006－2010. Based on previous literatures, a linear regression model is established with one dependent variable initial return of IPO, and thirteen independent variables, including realized offering size, exchange rate, low-wining rate, tradable share ratio, underwriter reputation, area, industry, earning per share, asset liability ratio, offering price, offering P/E ratio, time gap and the age of issuer. The regression result shows that four of independent variables are statistically significant. The variable of exchange rate, tradable share ratio, underwriter reputation, industry, earning per share are positively correlative with the magnitude of IPO underpricing. The variable of realized offering size, low-wining rate, area, asset-liability ratio, offering price, offering P/E ratio and the age of issuer are negatively correlated with the magnitude of IPO underpricing. The variable of exchange rate, lot-winning rate, offering price ad offering P/E ratio assumed as the main factors affect to the initial return in new environment of China market. The variable of area supplemented in the regression model in this study. In addition, the variables of tradable share ratio and time gap are insignificant factors to magnitude of IPO underpricing in the regression model in brand new market of China. Key word: IPO underpricing phenomenon, control variable, brand new market
first_indexed	2025-11-14T18:52:36Z
format	Dissertation (University of Nottingham only)
id	nottingham-25290
institution	University of Nottingham Malaysia Campus
institution_category	Local University
language	English
last_indexed	2025-11-14T18:52:36Z
publishDate	2011
recordtype	eprints
repository_type	Digital Repository
spelling	nottingham-252902018-02-20T19:49:11Z https://eprints.nottingham.ac.uk/25290/ AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010) meng, wei Abstract This study provides an empirical analysis of the control variables of the IPO underpricing phenomenon in new environment of China market. Applying multi regression through Stata 11, a simple comprises 677 companies, which issued and listed their A shares on Shenzhen Stock Exchange and Shanghai Stock Exchange are collected from 2006－2010. Based on previous literatures, a linear regression model is established with one dependent variable initial return of IPO, and thirteen independent variables, including realized offering size, exchange rate, low-wining rate, tradable share ratio, underwriter reputation, area, industry, earning per share, asset liability ratio, offering price, offering P/E ratio, time gap and the age of issuer. The regression result shows that four of independent variables are statistically significant. The variable of exchange rate, tradable share ratio, underwriter reputation, industry, earning per share are positively correlative with the magnitude of IPO underpricing. The variable of realized offering size, low-wining rate, area, asset-liability ratio, offering price, offering P/E ratio and the age of issuer are negatively correlated with the magnitude of IPO underpricing. The variable of exchange rate, lot-winning rate, offering price ad offering P/E ratio assumed as the main factors affect to the initial return in new environment of China market. The variable of area supplemented in the regression model in this study. In addition, the variables of tradable share ratio and time gap are insignificant factors to magnitude of IPO underpricing in the regression model in brand new market of China. Key word: IPO underpricing phenomenon, control variable, brand new market 2011-09-28 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/25290/1/dissertation%28wei_meng%29.pdf meng, wei (2011) AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010). [Dissertation (University of Nottingham only)] (Unpublished) IPO underpricing phenomenon control variable brand new market
spellingShingle	IPO underpricing phenomenon control variable brand new market meng, wei AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010)
title	AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010)
title_full	AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010)
title_fullStr	AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010)
title_full_unstemmed	AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010)
title_short	AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010)
title_sort	empirical analysis of the ipo under-pricing phenomenon in china market (2006-2010)
topic	IPO underpricing phenomenon control variable brand new market
url	https://eprints.nottingham.ac.uk/25290/

AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010)

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