Study On The Influence Of The Media Attention To IPO Underpricing Rate

With the rapid development of China's capital market,the method of financing by issuing shares is more and more popular.In just four and a half years from 2014 to the first half of 2018,1069 new shares were listed in China.However,there are anomalies such as IPO underpricing,short-term premium and long-term weakness in the performance of China's new stock issuance.This will not only harm the interests of investors,but also influence the normal operation of the capital market.With the development of behavioral finance,more and more scholars believe that the performance of new stock will be influenced by public investment behavior.Therefore,the media as a main approach to influence investor behavior,it is necessary to study its impact on the new stock.As the main way to transmit information in modern society,on the one hand,investors can reduce the cost of obtaining information and reduce the information asymmetry through the media.On the other hand,Coupled with the"limited attentiont" of investors,the media's focus on new shares will influence public investment behavior.Then,and stock prices will be affected as they change their demand for assets.Therefore,in the IPO markets,What is the impaction of media attention to the new shares?Whether the market under pricing rate is the same with the secondary market premium rate?Or is there a difference in the impact of different emotional reporting on new shares?This paper mainly studies these problems from both theoretical and empirical aspects.This paper is divided into five parts.First of all,on the basis of the research background,the theoretical significance and practical significance are discussed.The second is literature review.This part reviews the relevant theories of IPO underpricing,the impact of media reports on asset prices and the measurement of media concerns.The third part expounds the transmission mechanism of media information in the capital market,the theory of agenda setting and the theory of limited attention,and so on.On the basis of the theoretical review,this paper puts forward the empirical hypothesis of the fourth part.The fourth part is the quantitative coronary angiography of all listed shares selected from 2014 to the first half of 2018 on the basis of the theory.On the one hand,we consider the number of news reports of the 1069 stocks listed on the Baidu media index from the announcement date to the day before as explanatory variables.On the other hand,we divide the reports into negative and non-negative ones and respectively make empirical study with the underpricing rate of primary market and the premium rate of secondary market.We explore the influence of media attention on IPO underpricing rate in different markets,and supplement the research on the differences of the influence of media reports with different emotions on stocks.The fifth part summarizes the whole paper,putting forward the corresponding suggestions from different levels according to the conclusion.Objectively evaluate the limitations of this paper and propose directions for improvement in the future.The fifth part summarizes the whole paper,putting forward the corresponding suggestions from different levels according to the conclusion.Objectively evaluate the limitations of this paper and propose directions for improvement in the future.The results of this paper show that there is a correlation between media attention and underpricing rate of new shares,but there are differences in ways of influencing underpricing rate at different stages of IPO.(1)the higher the media attention,the lower the underpricing in the primary market,whereas,the higher the IPO initial returns and the premium rate in the secondary market;(2)No matter the negative emotion report or the positive emotion report,it has a negative effect on the underpricing rate of the primary market and a positive effect on the secondary market;(3)in the primary market,the media influence the underpricing rate through cognitive way to improve the transparency,and it make the stock price tend to issue price.In the secondary market,the media stimulates stock prices to rise or fall through the investor sentiment.