An analysis on the IPO underpricing in SME stock market in China

摘要

IPO underpricing and long-run underperformance are two puzzles in stock market. Selecting all listed companies in small market during A share market resumed offering in 2006 to stopped offering in 2008, author made an analysis on IPO underpricing to prove the phenomenon that the IPO price is too low and the closing price of the day is very high exist at the same time. Following the thoughts of Behavioral Finance, au thor made an explanation on IPO price behavior in A small market shares