The Influence Of The Characteristics Of Offline Placement On IPO Underpricing

IPO underpricing refers to the phenomenon that the circulation price of new shares is significantly higher than the issue price,which makes the investors who obtain the new shares allotment obtain the risk-free excess return,which has a certain negative impact on the resource allocation of the primary and secondary stock markets.However,although there are many studies on IPO underpricing at home and abroad,this phenomenon still exists in the global scope,especially in China,IPO underpricing is serious,which hinders the healthy development of China’s capital market.Most scholars’ researches on IPO underpricing in China are mostly focused on the financial indicators,issuance and market indicators,and underwriter reputation indicators of the issuing companies,but few people have made innovations.From a new perspective,for example,from the perspective of the characteristics of offline placements,the impact on IPO underpricing is analyzed by studying the relationship between underwriters and offline investors.Since China Securities Regulatory Commission reformed the relevant placement system in 2014 and gave the Underwriters the right to allocate new shares independently,people have gradually paid attention to whether there is an interest relationship between underwriters and institutional investors.Many scholars have proved that underwriters and institutional investors have the motivation to form an interest alliance,and this relationship can finally be reflected in the characteristics of offline placement,Most of the scholars’ research has stopped here,and no further research has been done on the impact of IPO underpricing.Based on the previous research,this paper extends the research further to the impact of offline placement characteristics on IPO underpricing,which is of innovative significance.This paper selects the basic characteristics of offline placement as the explanatory variables,and adds some control variables.Using Stata 15.0,it establishes the relevant model for research,and studies all a shares listed in 2014-2019 by sections,and makes regression analysis on the main board,growth enterprise board and small and medium-sized board respectively.After regression,eight influencing factors are finally determined,which are:the number of offline subscription inquiry objects,offline effective subscription multiple,the proportion of class a investors to be allocated,the number of preliminary inquiry allotment objects,the proportion of offline allotment,the first price earnings ratio,the first underwriting and recommendation expenses and the first information disclosure expenses.According to the results of regression research,this paper takes the proportion of offline placements as the core variable of the characteristics of offline placements,studies the influence mechanism of the characteristics of offline placements on IPO underpricing,validates the influence of institutional investors on IPO Underpricing and analyzes the influence mechanism by introducing the variables of the divergence degree of offline investors and the emotion of online investors.The final research shows that:the greater the divergence degree of offline investors or the higher the online investors’ purchase sentiment,the lower the impact of offline placement on IPO underpricing.It can be seen from the research of this paper that the Underwriters and the institutional investors keep a good relationship,so that the institutional investors actively participate in the inquiry of new shares,which is conducive to reducing the degree of information asymmetry between the two sides,improving the efficiency of IPO pricing,so as to alleviate the high underpricing rate of new shares...