Analysis of Factors Affecting the IPO Initial Return

Shuxuan Yu ()
Additional contact information
Shuxuan Yu: Chongqing Technology and Business University, School of Economics

A chapter in Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025), 2025, pp 122-131 from Springer

Abstract: 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.

Keywords: IPO; IPO initial return; multiple linear regression (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-874-5_16

Ordering information: This item can be ordered from
http://www.springer.com/9789464638745

DOI: 10.2991/978-94-6463-874-5_16

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().