Research On The Influence Mechanism Of Distribution Strategy On IPO Underpricing

Since the establishment of Shanghai and shenzhen,the system and rules of new issue have changed greatly.China began to implement the IPO inquiry system in 2005,the current issue system is gradually from the approval system to the registration system.Underpricing of initial public offering is a common problem in China's stock market for a long time.The analysis of the reasons for the difference in IPO underpricing rate is helpful to find out the problems in China's IPO process,so as to improve the relevant system of IPO.The study of this phenomenon is of great significance for improving the pricing efficiency of new shares in China and balancing the price difference between primary and secondary markets.Underpricing of initial public offering is affected by the issuance system,regulatory requirements,primary market and secondary market.Among them,the distribution strategy at the stage of ipo is also an important factor affecting the underpricing of ipo,and the influencing mechanism remains to be further discussed.This paper expounds the development status of initial public offering in China's stock market.This paper analyzes the mechanism of distribution strategy's influence on ipo underpricing from three aspects: underwriter,inquiry pricing and placement.The new share data from 2015 to 2018 were used to verify the impact of distribution strategy on ipo underpricing in each stage based on the multiple regression model.On the basis of general empirical analysis,this paper selects the case study of the proposed shares,and further tests and analyzes the empirical results from the aspects of the pricing efficiency of new shares,the reputation of underwriters,the listing performance and the process of inquiry and placement.The main findings of the paper are as follows:First,in the past two years,the acceleration of initial public offering has been normalized.The problem of "yan sehu" has been basically solved.The opening speed of new shares is getting faster and faster.Secondly,the number of underwriters in the distribution strategy has no significant influence on the underpricing rate.The reputation of underwriters,quotation of inquiry institutions and the number of inquiry institutions as measured by the initial underwriting amount have significant negative effects on the underpricing rate.The number of ipo underwriting,the winning rate of online individual investors and the oversubscription multiple and underpricing rate of offline institutional investors are positively correlated.Third,the analysis results of the case of the initial public offering of exploration shares are consistent with the empirical conclusion.The issue price of the prospecting shares is lower than their intrinsic value;Guangfa securities has a high reputation and strong underwriting ability.As an influential broker in China,it can effectively reduce the underpricing rate of new shares.In the inquiry stage,the more the number of effective requisitioning institutions,the more accurate the quotation,and the reasonable quotation of institutional investors can effectively reduce the degree of underpricing of new shares.Analysis of the placement stage shows that investor sentiment will magnify the ipo earnings.The possible incremental contribution of this paper lies in: selecting the rise of new shares on the opening day after listing as the index to measure the underpricing rate;Taking the distribution strategy as the entry point,the underpricing phenomenon of China's initial public offering is studied from the perspective of marketing.The shortcomings of this paper are as follows: the selected variables focus on the relevant influencing factors of distribution strategy,and the analysis has certain limitations;The sample interval is concentrated in the suspension and restart of the latest initial public offering,and the influence of distribution strategy on the underpricing of initial public offering under different issuing systems may be different,and further research is needed.