Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)

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Analysis of Factors Affecting the IPO Initial Return

Authors
Shuxuan Yu1, *
1School of Economics, Chongqing Technology and Business University, Chongqing, 400067, China
*Corresponding author. Email: yushuxuan@ctbu.edu.cn
Corresponding Author
Shuxuan Yu
Available Online 3 November 2025.
DOI
10.2991/978-94-6463-874-5_16How to use a DOI?
Keywords
IPO; IPO initial return; multiple linear regression
Abstract

IPO is the most commonly used financing method for enterprises in current market and is very attractive to investors. Understanding the underlying reasons for the changes in initial return of IPO is beneficial for investors to make decisions. This paper points out the limitations of existing research through literature review and identifies the factors that determine initial return of IPO. Then this paper explores the factors by constructing a multiple linear regression model on IPO data in the Chinese market from September 2014 to September 2013. It is found that consumer confidence, new investor accounts, and turn of last month have a negative influence on the IPO initial return. Investor sentiment has a positive impact on the initial return of IPO, which to some extent explains the changes in the initial return of IPO. Based on the analysis results, this paper proposes suggestions from the perspectives of government, enterprises and investors to reduce losses in all aspects, promote healthy market operation and economic growth. Finally, this paper reviews the limitations of this study and points out directions for future research.

Copyright
© 2025 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 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
3 November 2025
ISBN
978-94-6463-874-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-874-5_16How to use a DOI?
Copyright
© 2025 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  - Shuxuan Yu
PY  - 2025
DA  - 2025/11/03
TI  - Analysis of Factors Affecting the IPO Initial Return
BT  - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
PB  - Atlantis Press
SP  - 122
EP  - 131
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-874-5_16
DO  - 10.2991/978-94-6463-874-5_16
ID  - Yu2025
ER  -