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Dose Underwriter Credit and its Guiding Function Have Impact on IPO Break in China?

Chang Xu

International Journal of Economics and Finance, 2017, vol. 9, issue 5, 36-43

Abstract: Underwriters¡¯ pricing behavior is partially unreasonable in China, and the overreaction of investors can easily lead to IPO break. The paper explores datum of listed companies between 2009 and 2016 in A share market and establishes Logistic Regression Model, aimed to pro how Underwriter Credit and Investor Sentiment affecting IPO break. Conclusions are as follows: overpricing of new shares will make IPO break easier; Underwriters Credit have opposite effect on IPO break; Investor Sentiment has negative relationship with IPO break significantly; underwriters can guide Investor Sentiment by credit weekly, in order to lower the probability of IPO break.

Keywords: IPO break; underwriter credit; investor sentiment; registration system (search for similar items in EconPapers)
JEL-codes: R00 Z0 (search for similar items in EconPapers)
Date: 2017
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