An Empirical Study on the Relation between IPO Issuing Mechanisms and Underpricing and Long-run Performance in China
Efficient stock offering markets is the base for the normal operation of stock market, and the IPO issuing mechanism is the core of stock offering system. The article begins from the Chinese IPO issuing mechanisms, distinguish five different issuing mechanisms: pricing on the network, selling on the network, pricing and selling on the network, pricing on the network and selling to instiutional investors, bookbuilding. We find that the new short-term and long-term price trend of IPO stocks issued by different issuing mechanisms is totally different, and the issuing mechanisms have remarkable influence on the price of the IPO stocks. After further research, we believe that institutional investors are not flippers in Chinese stock markets, and the institutional investors cant stabilize the stock market. So the idea of stabilizing the stock market through the growth of institutional investors is not realistic.
IPO issuing mechanisms Bookbuilding Institutional investors IPO share allocation
HU Zhiqiang SUN Jianmin
Economics and Management School, Wuhan University, P.R.China Economics and Management School, Nanjing University of Posts and Telecommunications, P.R.China
国际会议
The Tenth West Lake International Conference on Small & Medium Business(第十届西湖国际中小企业研讨会)
杭州
英文
336-340
2008-10-25（万方平台首次上网日期，不代表论文的发表时间）