An Analysis Of The Regional Difference Of IPO Efficiency In China

IPO (Initial Public Offering，IPO for short) means that a limited liabilitycompany sells its shares to the public for the ifrst time. The stock market is animportant part of national capital market; it assumes responsibility for capitalallocation, so IPO eiffciency is very vital. Meanwhile, the regional economicdevelopment is extremely unbalanced in China. The Midwest is significantlybehind the east coast. According to statistics, there are also magnificentdifferences in IPO efficiency among regions. What are the conventionalfactors that affect IPO eiffciency? Is it the same result when takes regionalfactor into consideration? In this paper, I apply the cutting-edge spatialeconometrics to study these problems from a whole new perspective.Firstly, this article defines three different kind of IPO efficiency, thenexplain the relationship between asymmetric information and IPO efficiencyfrom the perspective of asymmetric information，then, introduce the relevanttheories and models of spatial econometrics, at last，I studied three kind ofIPO eiffciency with spatial correlation analysis and spatial regression analysis.The results indict that:1，when divided into31zones，all three kind of IPOefficiency do not exist significant negative global spatial correlation, while，when it comes to seven areas, there is a significant positive global spatialcorrelation;2., when divided into31zones，all three kind of IPO efficiencydo not have a orderly local spatial correlation, while，when it comes to sevenareas, the eastern areas are located in Low-Low district and the notrhwest andsouthwest are located in High-High district,3，financial indicators aresignificantly negatively correlated to IPO efifciency in most cases, turnoverrate is significantly positively correlated to IPO eiffciency in all cases, lotteryrate is significantly positively correlated to IPO efficiency in most cases，theeconomic development indicators has a negative correlation with the IPOefifciency in most cases, there does not exist a consistent and significantrelationship between underwirter reputation and the IPO efficiency;4，the coefficient of p and X from spatial regression shows magniifcent differentresults under different zone. It is negative in31zones, while it is significantlypositive in7zones;5，ordinary multiple regression also indicates that the IPOeiffciency in the eastern coast was significantly higher than the MidwestFinally, the author summarized the analysis results, based on the researchifndings, this paper gives some policy suggestions and clarifies its practicalsignificance.