Abstract
IPO secondary offerings have been widely concerned by people. The purpose of this paper is to study the effect of IPO secondary offerings on IPO underpricing in China's capital market. The data about IPO secondary offerings and IPO underpricing in the Shanghai and Shenzhen A stock market listed companies from December 2013 to April 2016 are used for empirical analysis. The study finds that the IPO secondary offerings has a significant effect on the IPO underpricing, and with the increase in the proportion of IPO secondary offerings, IPO underpricing tends to decline. Further analysis and tests show that in the good market, the inhibitory effect of IPO secondary offerings on IPO underpricing will be weakened, but it makes no difference in the SME board. On the main board market IPO secondary offerings has no significant influence on IPO underpricing. On the GEM and SME board market IPO secondary offerings has significant influence on IPO underpricing and the two are negatively correlated. The results further verify the role of IPO secondary offerings on IPO underpricing, and provide some inspirations for the improvement of China's capital market.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
