An empirical examination on the determinants of IPO underpricing in China

This dissertation examines the determinants of IPO underpricing based on the A-share IPO market in China. Using a sample of 2079 firms’ IPO information over the period of 2007 to 2017. An OSL regression model is established to test 6 main theories that explain the underpricing phenomenon, including...

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Main Author: He, Wanqiu
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/54538/
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author He, Wanqiu
author_facet He, Wanqiu
author_sort He, Wanqiu
building Nottingham Research Data Repository
collection Online Access
description This dissertation examines the determinants of IPO underpricing based on the A-share IPO market in China. Using a sample of 2079 firms’ IPO information over the period of 2007 to 2017. An OSL regression model is established to test 6 main theories that explain the underpricing phenomenon, including the information asymmetry, ex ante uncertainty, time interval, ownership, issue of “hot and cold market” and speculative bubble and information cascades effect theory. This model is comprised of one dependent variable, initial return, which measures the level of IPO underpricing and 13 independent variables that include the IPO size, market capital value, number of employees, firms’ age, leverage ratio, earnings per share, underwriter fees, return on equity, time interval, issue of “hot and cold market”, inside holding rate, circulation rate and lottery winning rate. In the result of these variables, three variables (number of employees, earnings per share and lottery rate) are insignificant to the magnitude of underpricing and four variables demonstrate opposite relationships compared to original hypotheses.
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spelling nottingham-545382022-08-25T12:36:40Z https://eprints.nottingham.ac.uk/54538/ An empirical examination on the determinants of IPO underpricing in China He, Wanqiu This dissertation examines the determinants of IPO underpricing based on the A-share IPO market in China. Using a sample of 2079 firms’ IPO information over the period of 2007 to 2017. An OSL regression model is established to test 6 main theories that explain the underpricing phenomenon, including the information asymmetry, ex ante uncertainty, time interval, ownership, issue of “hot and cold market” and speculative bubble and information cascades effect theory. This model is comprised of one dependent variable, initial return, which measures the level of IPO underpricing and 13 independent variables that include the IPO size, market capital value, number of employees, firms’ age, leverage ratio, earnings per share, underwriter fees, return on equity, time interval, issue of “hot and cold market”, inside holding rate, circulation rate and lottery winning rate. In the result of these variables, three variables (number of employees, earnings per share and lottery rate) are insignificant to the magnitude of underpricing and four variables demonstrate opposite relationships compared to original hypotheses. 2018-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/54538/1/Dissertation%20final.pdf He, Wanqiu (2018) An empirical examination on the determinants of IPO underpricing in China. [Dissertation (University of Nottingham only)] IPO underpricing determinants China’s security market
spellingShingle IPO underpricing
determinants
China’s security market
He, Wanqiu
An empirical examination on the determinants of IPO underpricing in China
title An empirical examination on the determinants of IPO underpricing in China
title_full An empirical examination on the determinants of IPO underpricing in China
title_fullStr An empirical examination on the determinants of IPO underpricing in China
title_full_unstemmed An empirical examination on the determinants of IPO underpricing in China
title_short An empirical examination on the determinants of IPO underpricing in China
title_sort empirical examination on the determinants of ipo underpricing in china
topic IPO underpricing
determinants
China’s security market
url https://eprints.nottingham.ac.uk/54538/