Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)

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Impact of Registration System Reform on IPO Pricing Efficiency in China’s Capital Market

Based on Stochastic Frontier Analysis

Authors
Jiayi Lyu1, *
1Department of Business, Nankai University, Tianjin, 300000, China
*Corresponding author. Email: 2012028@mail.nankai.edu.cn
Corresponding Author
Jiayi Lyu
Available Online 27 December 2022.
DOI
10.2991/978-94-6463-052-7_131How to use a DOI?
Keywords
IPO; Pricing efficiency; Stochastic frontier analysis
Abstract

Since 2019, China’s registration-based reform has continuously advanced, leading to a more market-oriented approach to IPO pricing. However, there is little agreement on whether IPO pricing efficiency has improved. As a result, this research compiles IPO data from 354 businesses listed in the GEM and 119 companies listed in the STAR market to assess IPO pricing efficiency before and after registration system reform using the stochastic frontier model. According to the study, GEM’s IPO pricing efficiency was 80.83% in the first year after the registration system was implemented and increased to 84.75% in the following year. This was lower than it had been before the registration system reform but higher than the IPO pricing efficiency of the STAR market. This essay examines the institutional investors, information disclosure, and IPO inquiry process as causes of the reduction in efficiency and makes three recommendations that are each comparable to each.

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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Volume Title
Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
27 December 2022
ISBN
978-94-6463-052-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-052-7_131How to use a DOI?
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.

Cite this article

risenwbib
TY  - CONF
AU  - Jiayi Lyu
PY  - 2022
DA  - 2022/12/27
TI  - Impact of Registration System Reform on IPO Pricing Efficiency in China’s Capital Market
BT  - Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
PB  - Atlantis Press
SP  - 1169
EP  - 1178
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-052-7_131
DO  - 10.2991/978-94-6463-052-7_131
ID  - Lyu2022
ER  -