Analysis of IPO underpricing and influencing factors in China's growth enterprise market

IPO underpricing is a common phenomenon in various stock markets, and IPO underpricing is more prominent in China's GEM, which has a relatively short establishment period. Based on the combination of theoretical analysis and empirical research, this dissertation makes a comprehensive investigat...

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Main Author: Yang, Huiru
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2020
Online Access:https://eprints.nottingham.ac.uk/62571/
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author Yang, Huiru
author_facet Yang, Huiru
author_sort Yang, Huiru
building Nottingham Research Data Repository
collection Online Access
description IPO underpricing is a common phenomenon in various stock markets, and IPO underpricing is more prominent in China's GEM, which has a relatively short establishment period. Based on the combination of theoretical analysis and empirical research, this dissertation makes a comprehensive investigation of the underpricing of GEM in China, which has certain theoretical and practical significance for improving the financing efficiency of enterprises and improving the operating environment of the GEM market. This article uses the data of 782 listed companies listed on China's GEM from October 2009 to December 2019 as a sample and combines the characteristics of the GEM to select multiple factors that may affect the underpricing rate of the GEM. Through the use of statistical analysis, correlation test, and multiple regression linear models to investigate the influencing factors of underpricing. By dividing the sample into two periods, I find that the relationship between variables and IPO underpricing rate is different in different periods, and shows different significance. Finally, the paper concludes that investors' speculative psychology, ex-ante uncertainty, and underwriter reputation are the reasons for the high underpricing rate of GEM. Based on the above empirical results and analysis, the corresponding suggestions are put forward.
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spelling nottingham-625712023-04-14T10:43:59Z https://eprints.nottingham.ac.uk/62571/ Analysis of IPO underpricing and influencing factors in China's growth enterprise market Yang, Huiru IPO underpricing is a common phenomenon in various stock markets, and IPO underpricing is more prominent in China's GEM, which has a relatively short establishment period. Based on the combination of theoretical analysis and empirical research, this dissertation makes a comprehensive investigation of the underpricing of GEM in China, which has certain theoretical and practical significance for improving the financing efficiency of enterprises and improving the operating environment of the GEM market. This article uses the data of 782 listed companies listed on China's GEM from October 2009 to December 2019 as a sample and combines the characteristics of the GEM to select multiple factors that may affect the underpricing rate of the GEM. Through the use of statistical analysis, correlation test, and multiple regression linear models to investigate the influencing factors of underpricing. By dividing the sample into two periods, I find that the relationship between variables and IPO underpricing rate is different in different periods, and shows different significance. Finally, the paper concludes that investors' speculative psychology, ex-ante uncertainty, and underwriter reputation are the reasons for the high underpricing rate of GEM. Based on the above empirical results and analysis, the corresponding suggestions are put forward. 2020-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/62571/1/20105482-BUSI4020-Analysis%20of%20IPO%20underpricing%20and%20influencing%20factors%20in%20China%27s%20growth%20enterprise%20market.pdf Yang, Huiru (2020) Analysis of IPO underpricing and influencing factors in China's growth enterprise market. [Dissertation (University of Nottingham only)]
spellingShingle Yang, Huiru
Analysis of IPO underpricing and influencing factors in China's growth enterprise market
title Analysis of IPO underpricing and influencing factors in China's growth enterprise market
title_full Analysis of IPO underpricing and influencing factors in China's growth enterprise market
title_fullStr Analysis of IPO underpricing and influencing factors in China's growth enterprise market
title_full_unstemmed Analysis of IPO underpricing and influencing factors in China's growth enterprise market
title_short Analysis of IPO underpricing and influencing factors in China's growth enterprise market
title_sort analysis of ipo underpricing and influencing factors in china's growth enterprise market
url https://eprints.nottingham.ac.uk/62571/