An Empirical Study: Influence Of Locking System On IPO Market Performance Of Listed Companies

The IPO market performance of listed companies mainly reflects from issuing price,first-day IPO underpricing and abnormal returns for a long time, it has been a keyresearch topic of foreign and domestic scholars. The first-day IPO underpricing rate andits influencing factors analysis is occupying the important status in the research ofmodern finance. Along with continuous development of locking system in the processof IPO of listed companies, its role in the IPO process gradually cause the attention ofscholars. Due to our country capital market started late, locking system’s effect in theprocess of the listed company’s IPO needs further research.This article selects54listed companies on small and medium-sized board appearedon the market in2012to study the influence of locking system on small andmedium-sized enterprise board listed companies IPO market performance. In2012,shares3months fixed time of off-line allotment was cancelled, which was selected asdemarcation point. We use descriptive statistics and multivariate regression analysismethods to analyze IPO price, the first-day IPO underpricing and the long-termabnormal returns of listed companies on small and medium-sized enterprise boardbefore and after the system change. The empirical results show that the cancellation oflocking system reduces the issue price and the IPO first day underpricing rate of listedcompanies on small and medium-sized enterprise board, which can provide referencefor new shares issuing system reform of small and medium-sized enterprises. At the endof the paper, for locking system in the listed company’s IPO process I put forward thecorresponding policy recommendations and the prospect of future research.