Analysis of IPO Underpricing:Evidence from China

• Main Authors: Shih-yuan Chang, 張仕原
• Other Authors: Jeng-ren Chiou
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/76198579904087360719

碩士 === 國立成功大學 === 會計學系碩博士班 === 95 === Using the data of 1,031 A-share initial public offerings (IPOs) between January 1995 and the beginning of March 2007, this study has found that the average underpricing of Chinese IPOs is 118.7 percent, which is higher than the levels of the other emerging markets. Due to the extremely high degree of underpricing in China, a lot of studies have been attracted and have been trying to find out what makes the underpricing in China so severe. This study employs the cross-sectional analysis and find that: (1) The underpricing of IPOs in China is primarily explained by the ex ante uncertainty surrounding the new issues and inequality of supply and demand. (2) The different IPO mechanisms also affect the degree of underpricing in China.