Exploring Detriments of China IPO Underpricing: An Empirical Evidence from A-share IPO

DOI

10.2991/978-94-6463-052-7_161How to use a DOI?

Keywords

IPO Underpricing; Information Asymmetry; Corporate Governance; China Stock Market Policy Changes

Abstract

As an important method for the financing purpose of listed companies, an initial public offering (IPO) is a vital connection between companies and investors and is also the necessary foundation for the development of financial markets. However, since the 1970s, IPOs are observed consistently being underpriced around the world. This article selects China which is one of the most underpriced countries as the sample. With the empirical support from the ordinary least square regression method (OLS) based on the Chinese A-share IPO figure, aiming to explore the sources of the IPO market underpricing phenomenon. Besides, this article also discusses China-specific financial market characteristics and assesses the effect of past Chinese stock market policy changes.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yixin Chen
PY  - 2022
DA  - 2022/12/27
TI  - Exploring Detriments of China IPO Underpricing: An Empirical Evidence from A-share IPO
BT  - Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
PB  - Atlantis Press
SP  - 1454
EP  - 1466
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-052-7_161
DO  - 10.2991/978-94-6463-052-7_161
ID  - Chen2022
ER  -