An Analysis Of IPO Underpricing Characteristics And Influencing Factors In China

IPOs in general mean that shares perform well in capital markets on the first day of initial public offerings.The excess returns are more or less existed in the global capital markets. Why almost every country’s capital market has the IPOs underpricing phenomenon is still a mystery. The high IPOs underpricing would make trouble with issuers, underwriters, capital markets and national economies. The study of characteristics and factors affecting underpricing has practical significance. I collect stock data by hand, using Excel lists and mapping to describe the characteristics of underpricing.I make a comparative analysis of underpricing of three sections and six industries, and describe Features and prices after the IPOs period of time.I use empirical analysis and test on the impact of IPOs underpricing. It concluded that: after the IPOs restartfactors affect underpricing includingthe actual net proceeds, success rate, and the listed market rate of return on the first day and Baidu index. The actual net proceeds, and the success rate are inversely proportional to the underpricing rate. While listed market rate of return on the first day and Baidu index are proportional to underpricingrate. The size of issuance, the market environment, investors’ attention and emotions have impact on underpricing rate. In addition, the limited earnings is also an important reason for the high degree of underpricing.At last Ioffer suggestions from a policy perspective to solve IPOs underpricing phenomenon and also from the perspective of investors to tell new investors how to invest in IPOs.