Stock Issuance Pricing And Shareholder Reduction

In recent years,the important shareholders of the listed companies continue to reduce the shares,which has gradually become the focus of the securities market investors and supervision.Especially the promoter shareholders reduce the share more frequently,the holdings of shares after the pitch of the listing date are more shorten,which have been criticized by market participants.Scholars at home and abroad have conducted in-depth analysis of the phenomenon of shareholder reduction,and explained the motivation of shareholder reduction by using stock price valuation theory,large shareholder tunneling theory and financial performance theory,and pointed out a series of negative effects of large shareholders' cash holdings.However,the existing literature seldom pays attention to the relationship between stock issuance pricing and the reduction of shareholders after the issue.The issuance of shares mainly involves issuers,uderwriters,investors and securities regulatory agencies.The issuers and underwriters play an important role in stock issue.Logically,a company's promoter shareholder is not only a participant in the financing decision but also a main actor in the reduction.Its financing and reduction is likely to be a package decision rather than an independent process.According to the theory of opportunism,the shareholders of the corporate sponsors have a motive to conspire with the underwriting brokers to raise the price of the stock issue and maximize the interests of the two parties.Based on the above theory,this article from the IPO pricing perspective on IPO pricing affects shareholders holdings of stock cost,thereby reducing the tendency and consequences of internal relations between shares for recognition of stock issuance and after the issuance of the shareholders,to broaden the cognition on the stock reduction,and help investors to judge and forecast the stock offering the empirical evidence supports the possibility of reduction.The empirical analysis of the listed company's IPO pricing will affect the decision-making behavior of shareholders after the release of stock holdings conclusion:(1)The higher the stock issue price,the more likely the shareholders of the sponsors to reduce the shares after the circulation of the stock;(2)Shareholders'stock holdings decision has contagion effect,The reduction of stock by the shareholders of the sponsors will promote the reduction of the shares of the non-sponsor shareholders,but the reduction of the non-sponsor shareholders will not cause the reduction of the sponsors;(3)The shorter the end period of the limit selling limit of the shareholders,the more obvious the above effects are;(4)the stock issuance of listed companies pay high pricing and underwriting the cost of positive correlation.Based on this,there is a potential correlation between the company's high underwriting fee,the opportunity to get the excess issuing price,and the reduced share price after the issuance,so as to recover the cost of listing.