The impact of IPO pricing model on the issuing price: Evidence from China

• Main Author: CHEN, Shancheng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: IPO underpricing ratio; underwriters’ reputation; Asian Studies; Business Administration, Management, and Operations
• Online Access: https://ink.library.smu.edu.sg/etd_coll/483; https://ink.library.smu.edu.sg/context/etd_coll/article/1481/viewcontent/GPBA_AY2017_DBA_Chen_Shancheng__1_.pdf
• Institution: Singapore Management University

IPO pricing effectiveness refers to the deviation between the IPO price in the primary market and the actual trading price in the secondary market at the initial stage of listing. IPO underpricing ratio is the main research index used to investigate the effectiveness of IPO pricing in capital market. The phenomenon of excessive IPO underpricing brings many problems to the development of Chinese capital market. The GEM from the establishment of the initial audit system to the registration system, to the inquiry of the implementation of the new rules, IPO underpricing rate has been gradually controlled. This paper mainly studies the influence of underwriters with different reputations on IPO underpricing rate after the registration system and before and after the implementation of the new inquiry regulation, hoping that the research results will be helpful to the formulation of government policies and the selection of underwriters by issuers.