| IPO underpricing refers to the phenomenon that the closing price on the IPO day is much higher than its issue price.Many documents have found that there is serious IPO underpricing in China’s stock market,especially in GEM.Our first IPO list in GEM is consist of 28 companies,inwhich average underpricing rate reaches to 106.23%.In the year 2015,the average underpricing rate of total 87 companies is 42.67%.From the experience of western countries,the appropriate underpricing rate is from 10% to 20%.So the underpricing rate in the GEM is still high.High underpricing rate helps a minority of investors receive benefits in the short term,but in the long run,it will increase the speculative atmosphere.Besides listed enterprises have the motivation to beautify the financial statements,the high underpricing rate will be harmful to the medium and small investors.So it is necessary to do research on underpricing rate of the GEM.This paper uses the literature study and regression statistical methods.We selected 409 listed enterprises from the GEM,162 listed enterprises from the main board market,and 360 listed enterprises from the SME.The stock transaction data is from June 2010 to March 2016.We classified the influencing factors into four parts,investor sentiment,market sentiment,issue procedures and financial affairs.This paper selects ten indicators containing HSI,DTOR etc.Providing eliminating serial correlation,we use stepwise regression statistical method to find out the main influencing factors and compare to the main board market and the SME.The results show that the main influencing factors are issue scale and market sentiment in the GEM.We conclude that,the underpricing rate difference between GEM and the main board market is reducing,the listed enterprises in the GEM usually use earnings management to satisfy the criterions of IPO,the majority of investors seldom make investment decision based on company fundamental analysis,the main influencing factors in the GEM are from the secondary market includeing investor sentiment and market sentiment. |
