| In2010, China’s capital market has a large number of new shares on the first day of breaking the offer price, this phenomenon is still prevalent in2012, the financial sector and academia generally consider this mainly due to "three high" issue (high issue price, high price-earnings ratio, high fund-raising amount), but it is not true with a preliminary analysis, then what causes the last three years of new shares a large number of break, what is the difference of long performance between the breaking the offer price and not-breaking? This paper aims to explore if "three high" issue impact new shares breaking the offer price on the first day, as well as explore some other factors, and then analysis of market performance difference of breaking and not breaking.This article chooses625IPO samples in the domestic market of2010and2011. First, this paper analyzes the impact of the "three high" issue as well as IPO five stakeholders (issue companies, venture capital firms, underwriters, institutional investors, retail investors) on the first day of the breaking the offer price; then select the break sample analysis of some of the factors on impact of the extent of the breaking; Finally, the article compares the stock market performance differences of the breaking stock and not breaking one year after the listing, further analysis of the first day of the break as well as other factors influencing the stock market performance.This paper studies the following conclusions:(1)"three high" issue does not result in easier to break, the higher issue price-earnings ratio, the larger fundraising, but not easy to break the offer price;(2) more experience of underwriters are not easy to break the offer price, institutional investors to subscribe for the more positive the more easy to break, but retail investors to subscribe for the more positive the more not easy to break, issue company and venture capital background on shares break impact are not significant;(3) the company listed breaking the offer price first day average excess return rate not broken company, after the listing of120trading days, the excess yield difference is up to8%-9%, but the average excess volatility of breaking is lower than the company did not break, the first day of the break significantly impact the excess yield, and it’s the overreaction of retail investors;(4) the higher investor sentiment of retail investors, the more positive the subscription of new shares, the new shares is not easy to break, but after the listing, the market performance is worse. |
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