An Empirical Study of IPO Underpricing: Evidence from Small Medium-sized Board in China
Initial Public Offerings underpricing is a commonplace phenomenon in the stock market of China for ages, especially in small and medium-sized board. This paper examines the factors which influence the degree of IPO underpricing in small and medium-sized board by means of empirical methodology with substitute variables. Furthermore, this paper has proven that some of foreign theories are still valid in the small and medium-sized board in China. The result indicates that the factors which have significant impact on IPO underpricing include probability of lot, issuing size, issuing price-to-earnings ratio and period waiting for listing. Finally, this paper comes to a conclusion that Popularity Effect hypothesis and signal indication are suitable, while speculative-bubble hypothesis and internal blocking hypothesis are not suitable in the small and medium-sized board in China.
IPO underpricing the small medium-sized board influence factors empirical methodology
XIONG Heping CAI Jie
Economics& Management School, Wuhan University, Wuhan, China, 430072
国际会议
海口
英文
405-409
2010-11-26（万方平台首次上网日期，不代表论文的发表时间）