Abstract
A serious IPO underpricing phenomenon has been existing in China’s stock market for a long time. Many studies show that the splitting- stock problem is the main reason for the abnormally high IPO underpricing. Today, the reform of stock right splitting has basically been completed, this paper conducted an empirical analysis on IPO underpricing in the context of full circulation. Estimation results show that: after the reform of stock right splitting, a clear phenomenon of the IPO underpricing still exists in China’s stock market, but there is a relatively big margin decline compared with the pre-reformed market. And the Shenzhen market’s average is higher than the Shanghai stock market's. Meanwhile, the multi-factor regression analysis shows that as for the new shares issued in china’s special bull market ,the relationship between the scale of the issuance of IPO, the gap between the listed day and the issued day, the issue price, he net assets per share, the success rate and the IPO underpricing is Unlike traditional research-minded.
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