An Empirical Analysis of IPO Underpricing in Chinese A-Share MarketFrom 2003 to 2006

Feng, Dongdong (2012) An Empirical Analysis of IPO Underpricing in Chinese A-Share MarketFrom 2003 to 2006. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Abstract

This dissertation conducts an empirical analysis on the explaining variables and the degree of IPO underpricing in the Chinese A-share market. The STATA 11 is employed as the tool to apply the regression analysis on the empirical models. There are 250 IPOs listed on the Chinese A-share market from 2003 to 2006 including in the sample data.

The degree of IPO underpricing in the Chinese IPO market from 2003 to 2006 is found to be 73% in this dissertation. The agency cost is found to be significantly affects the level of IPO underpricing during this period. Other variables in this dissertation are found to be insignificant in the regression analysis or can only explain the IPO underpricing for a particular time period and specific industry. The reasons for the insignificant results are discussed in detail in this dissertation. Additionally, the impact of using the book building pricing method from 2005 is also examined and the result shows that this new pricing method is not the factor that affects the level of IPO underpricing in China. Finally, the most popular industry on the Chinese IPO market which are manufacturing and energy are also investigated. The result concludes that the investors in these two industries are more rational than other investors. After the analysis in this dissertation, it is concluded that the advance variables and models are expected to explain the IPO uderpricing with the changes interms of institutional settings, pricing method and offering mechanism.

Key word: IPO underpricing, book building method, manufacturing and energy industry

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 08 Apr 2013 11:12
Last Modified: 18 Oct 2016 22:55
URI: http://eprints.nottingham.ac.uk/id/eprint/26061

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