Empirical Study on Our Country’s Initial Public Offerings Efficiency in Inquiry System ——Based on Stochastic Frontier Analysis

DOI

10.2991/icetem-15.2015.84How to use a DOI?

Keywords

Initial public; pricing efficiency; stochastic frontier analysis; fall on.

Abstract

The paper regards 647 of Initial Public Offerings (IPO) companies on SMEs board from June 2006 to November 2012 as research samples, utilizes stochastic frontier analysis to carry out an empirical test on reform of initial public offering for three times and primary market’s pricing efficiency, and explains the phenomenon of falling on its first day of trading. Research results show that IPO primary market pricing in inquiry system has obvious upper boundary phenomenon for overall samples. Before the first reform in June 2009 and after the third reform in May 2012, because China Securities Regulatory Commission(CSRC) conducts “window operation” on offering price, resulting in the generation of deliberate under pricing in primary market. Offering primary market pricing isn’t fully efficient, while depression of secondary market is the primary cause of resulting in falling on its first day of trading for initial closing price.

Copyright

© 2015, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jian Zhang
AU  - Houjian Li
PY  - 2015/03
DA  - 2015/03
TI  - Empirical Study on Our Country’s Initial Public Offerings Efficiency in Inquiry System ——Based on Stochastic Frontier Analysis
BT  - Proceedings of the 2015 International Conference on Education Technology and Economic Management
PB  - Atlantis Press
SP  - 557
EP  - 563
SN  - 2352-5398
UR  - https://doi.org/10.2991/icetem-15.2015.84
DO  - 10.2991/icetem-15.2015.84
ID  - Zhang2015/03
ER  -