A Study On The Excess Income Of IPO In China's A Stock Market

Since the 90s of last century,the phenomenon of IPO excess return in the A share market has been there.Today,the myth of new shares making rich is still on the stage.But at the same time,we also see that new shares tend to show a long-term weakness after a short rise in the initial stage of the market,and the value investors who hold the new shares for a long time are often suffering from the pain of being held up.Such roller coaster turbulence is hamper the smooth operation of China's securities market.Based on this situation,the CSRC issued a series of policies in November 2015,which has achieved certain results,but it is still a long way to go to change this phenomenon thoroughly.To this end,we need to further explore the nature,influencing factors and changing trend of IPO excess return,so as to make targeted policy improvement.Starting from the origin of the new issue of the issue of excess returns,this paper introduces the research status of scholars at home and abroad and summarizes the evolution of the IPO system in China in the last 20 years,and then expounds the innovation of this article.In the empirical part,this paper takes 575 new shares listed from December 9,2015 to September 7,2017 as the research object,analyzes the degree changes and influencing factors of IPO excess returns,and further analyzes the"long-term" performance of IPO company for a certain period after the listing as the basis for judging its rationality.Finally,it puts forward some proposals for the reform of IPO system.The results show that:(1)the excess return of IPO in China is still positive at this stage.(2)the excess earnings of IPO in China are affected by the issue price,net assets per share and the underlying market.In addition,the investor's attention degree,which is first proposed in this paper,has strong explanatory power for the phenomenon of IPO excess return.(3)the excess returns of new shares are generally declining during the 1 months to one year after the listing,which indicates that the existence of excess returns is unreasonable,and we can improve this situation by changing the determining standards of issuing price,purchasing procedures and trading systems.