The Research On The IPO's Industrial Effect And Influencing Factors Of China's A-share Market

This paper studies the effect of a firm's IPO on the returns of stocks in the same industrial categories in Shanghai and Shenzhen market from january 2005 to December 2009, and to determine whether IPOs have implications for rival firms. Then we analyse the influencing factors of the IPO's industrial effect.We examine the IPO's industrial effect by using the event study in Shanghai and Shenzhen market from january 2005 to December 2009 .and we selected the filing date as the first day of the event window period, investigated the presence of IPO's industrial effect. in our stock market.Then we analyse the influencing factors of the IPO's industrial effect on theoretically.Flowing the theoretical analysis we examine the influencing factors of the IPO's industrial effect by using the cross-section regression.The paper finds that before a firm's IPO,there is significant positive excess return in the same industrial categories,and the effece is influedce by the IPO's Price Comparison effect and competitive effects.And the significant positive effect is influenced by the IPO's Price Comparison effect.The negative effect is influenced by the IPO's competitive effects.