Empirical Research Of Price Behavior On A-share Market IPO In China

The study on the Price Behavior of IPO is related to the stability of the entire Stock Market and the main aspects of distributing resources efficiently. With the development of society and economy, the stock market becomes more and more important and has obtained their own constant progress and improvement. However, compared with western developed countries, some problems still exist, such as serious non-rational investors, over-reaction and frequent speculation and so on, which lead to the serious volatility in Stock Market and enhance the risk of securities investment.Based on the subsistent domestic and abroad research results, the paper has made use of a method of combining the theoretical model and empirical study to research the price behavior of the new shares empirically by collecting masses of relevant data. Compared with the existing documents, there are some differences as following.Firstly, the price behavior of IPO has been studied under the assumption of invalid short-term pricing of the stock market and obtained relevant research theories, instead of basing on the analytical frame of efficient Market which has been used to study the IPO price behavior in most previous studies.Secondly, the paper has combined IPO Under-pricing with the performance of IPO in the afternoon market to research on the issue of the price behavior of IPO, instead of long-time isolation of IPO Under-pricing and the representation of IPO in the afternoon market long-time in most previous studies. By bringing the under-pricing rate as explanatory variables into the regression analysis model, the paper has combined the both excellently. Eventually, the study found that a very significant relationship between the rate of IPO under-pricing and the afternoon market performance.Lastly, the relevant theories on Real Option have been introduced into the study on the price behavior of IPO for the first time. Because of the use of theoretical model and empirical approach to research, it makes the research results more objective and effective.In conclusion, by using the analysis and the statistical data, the paper has set up a complete IPO price behavior model including IPO under-pricing and study and the performance of IPO in the afternoon market, and it has also drew and expanded the analytical framework and relevant theories of the IPO price behavior from a theoretical point, and by doing a great deal of empirical research on the price behavior of A-share IPO in practice, a certain value important conclusions has been obtained. This study has an important theoretical and practical significance for the proper understanding the price behavior of A-share IPO, recognizing the impact of its inherent variety factors and improving the efficiency of issuance in the IPO primary market and pricing efficiency in secondary market.