AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010)

meng, wei (2011) AN EMPIRICAL ANALYSIS OF THE IPO UNDER-PRICING PHENOMENON IN CHINA MARKET (2006-2010). [Dissertation (University of Nottingham only)] (Unpublished)

[img] PDF - Registered users only - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (2MB)

Abstract

Abstract

This study provides an empirical analysis of the control variables of the IPO underpricing phenomenon in new environment of China market. Applying multi regression through Stata 11, a simple comprises 677 companies, which issued and listed their A shares on Shenzhen Stock Exchange and Shanghai Stock Exchange are collected from 2006-2010.

Based on previous literatures, a linear regression model is established with one dependent variable initial return of IPO, and thirteen independent variables, including realized offering size, exchange rate, low-wining rate, tradable share ratio, underwriter reputation, area, industry, earning per share, asset liability ratio, offering price, offering P/E ratio, time gap and the age of issuer.

The regression result shows that four of independent variables are statistically significant. The variable of exchange rate, tradable share ratio, underwriter reputation, industry, earning per share are positively correlative with the magnitude of IPO underpricing. The variable of realized offering size, low-wining rate, area, asset-liability ratio, offering price, offering P/E ratio and the age of issuer are negatively correlated with the magnitude of IPO underpricing.

The variable of exchange rate, lot-winning rate, offering price ad offering P/E ratio assumed as the main factors affect to the initial return in new environment of China market. The variable of area supplemented in the regression model in this study. In addition, the variables of tradable share ratio and time gap are insignificant factors to magnitude of IPO underpricing in the regression model in brand new market of China.

Key word: IPO underpricing phenomenon, control variable, brand new market

Item Type: Dissertation (University of Nottingham only)
Keywords: IPO underpricing phenomenon, control variable, brand new market
Depositing User: EP, Services
Date Deposited: 25 Apr 2012 14:21
Last Modified: 25 Oct 2016 01:37
URI: http://eprints.nottingham.ac.uk/id/eprint/25290

Actions (Archive Staff Only)

Edit View Edit View