Research On The Wealth Effect Of Investment In The Secondary Market Of IPO

In recent years,after the listing of new shares listed on the board and then keep the daily limit for some time after another phenomenon,for the success of new shares in the purchase of investors,the first day in the IPO or open the daily limit to sell new shares will be able to get higher returns,However,for most of the secondary market investors,the purchase price of new shares is to open the daily limit after the price,the cost will be much higher than the IPO price and listed on the first day closing price,then for these in the secondary market investment New investors,whether it can get positive wealth income? From the current relevant literature,there is no relevant domestic research.This paper will measure the wealth effect of the stock market from the absolute and excess returns(the absolute return minus the market average),and use the initial effective purchase price as the cost of the IPO.The initial effective purchase price refers to the investor can effectively buy the IPO price,this article will be listed after the IPO rate of more than 20% of the day's closing price as the IPO purchase price,in addition to the IPO sample stocks research time for three years.The results show that the Shenzhen motherboard,whether it is a year or two years,three years of absolute income and excess returns are greater than 0,can give investors a positive wealth effect,with high investment value,and GEM IPO investment for three years to invest But the excess returns are always negative,and the gains from investors are lower than the average of the GEM,resulting in a relative reduction in wealth.Another investment in small plates and Shanghai motherboard IPO year and two years,investors get the absolute and excess returns are negative,if the investment time of three years,the absolute income and excess returns are positive,indicating that the two Market IPO for investors to do long-term investment.In addition,found in the bull market and bear market IPO earnings effect there are some differences.Listed in the bull market during the listing of IPO absolute earnings higher than the bear market IPO,while the other market bull market IPO IPO a year higher than the absolute income of the IPO market during the IPO,two years and three years of absolute income is the opposite;small board and Shenzhen The main board during the bear market IPO excess earnings to be significantly higher than the bull market listed on the new shares,the Shanghai motherboard and the GEM listed during the bull market IPO year and two years of excess earnings to be greater than the bear market IPO,while the three-year excess return is the opposite.The results show that the Shanghai board IPO investors are risk-averse investors,the lower the price-earnings ratio of the more companies to get investors favor,to investors to bring the absolute benefits and the benefits of the stock market IPO absolute earnings and excess returns of the factors,The higher the excess returns.While the small board IPO wealth effect and IPO underpricing rate was negatively correlated,the lower the underpricing rate of the company to investors the greater the wealth effect.GEM investors are risk-preferred,wealth effect and price-earnings ratio was positively correlated with the circulation of shares was negatively correlated.