A Study On IPO First Day Excess Return On The Small And Medium Enterprise Board Under The Approval System

small and medium enterprise board market in China has developed more ten years,a large number of outstanding small and medium enterprise come to this market.They get financial resources to develop themselves.The market plays an importent role in economic.But at the same time, mall and medium Enterprise board itself has many problems.the most prominent problem is that small and medium enterprise board listed on the first day of IPO excess return has been high, much higher than the same motherboard and other developed countries, which high return on the first day is not conducive to the healthy and stable development of capital markets. The emergence of this problem are many reasons.the reform of the various systems over the years have not been completely resolved.Therefore, the study of this problem, identify the root causes of the formation of this issue is Significance. This paper uses multiple linear regression model to analyze factors of the small and medium enterprise board on the first day excess return, and raise policy recommendations.This paper analyzes the following aspects:First, introduce the research background and significance of research results to relevant theory necessary induction and comments, as this paper provide theoretical and methodological support.Second, IPO pricing mechanism of the basic content. Overview of domestic and international IPO issuance mechanism, IPO pricing and underpricing theory, changes in China's IPO release mechanism and evaluation. Third, the market features small plates, small and medium enterprise board listing requirements, the process of building small and medium enterprise board, small board business sense, means the establishment of the SME board.Fourth, small and medium Enterprise board IPO excess returns of factors. Securities issuance system and the first day of the relationship between the excess rate of return, the company's value factor and the excess return on the first day Fifth, mathematical model are established.It finds the main factor that influence the degree of IPO overvaluation. Finally, draw conclusions and policy recommendations, through the analysis of small and medium Enterprise board outlook GEM IPO system of market reforms in China.