An Analysis On Returns Of The IPO Day In Chinese SSE STAR Market Market

Issues related to initial public offering(IPO),especially IPO pricing,return on the IPO day,and related underpricing have always been a hot area of academic research.Since the establishment of the STAR Market in 2019,according to the characteristics of technology companies,a series of innovative measures including the registration system have been adopted in the IPO process,hoping to improve the efficiency of IPO pricing for technology companies to better price advanced technological elements.In the past few years since the STAR Market has been in operation,the returns of IPOs on listed companies vary.What happens to companies in the IPO process,this paper mainly studies the first-day returns of new stocks on the STAR Market and the factors that affect whether they fail.On the basis of a relatively comprehensive introduction to domestic and foreign theoretical and practical research on IPO returns and IPO underpricing,combined with the development history of Chinese stock market and the changing process of IPO pricing methods,in the analysis and consideration of the corresponding system design.This paper puts forward the hypothesis of the influencing factors of the IPO return of the STAR Market.In terms of empirical research,this paper selected relevant IPO data,financial data and market data of all companies listed on the STAR Market from the opening to the end of Year 2022.Starting from the four aspects of the capital market situation,select indicators such as market sentiment,financing scale,enterprise scale,and equity concentration as the main explanatory variables,and select relevant control variables to establish a research model to explore the IPO-day returns of new stocks on the STAR Market and whether they fail and influencing factors.The empirical results show that market sentiment and firm size have a significant positive impact on IPO first-day returns,while financing scale and equity concentration have a significant negative impact on IPO first-day returns.Then the paper conducts a heterogeneity analysis based on the differences in the nature of enterprises and the differences in lead underwriters.In terms of the application of the research conclusions,combined with the results of empirical analysis,this article deeply analyzes the reasons why the new stock Deep Glint on the STAR Market underpriced the IPO day.In terms of policy suggestions,based on the research conclusions,this paper puts forward relevant suggestions from two aspects of the issuer and system design.