| Summary: | 碩士 === 國立中山大學 === 企業管理學系研究所 === 95 === The average underpricing of Chinese IPOs is 243.8%, in this paper we investigate if all variables have influences to extreme initial returns. The results are as following:
The coefficients for listing time lags, tradable shares ratio and initial returns are statistically significant. This result means investors are sensitive about the cost of occupied capital after successfully subscribing and the risk of the uncertainty in the future. The significance between initial returns and tradable stocks ratio indicates investors are sensitive about the index of long-term development, because the ratio exerts its influence by affecting corporate governance and important events. The issuing size is just the supply of IPOs, it’s negative determinant of initial returns, and the size means the degree of difficulty the bankers bid up stock price. Underwriting cost is significantly related to initial returns, the cost is like the ransom to shrink the lockup period. It could encourage the underwriters to lobby officials, then the lockup period will become shorter. The room of lower issuing price shares to rise is huger, so the degree of underpricing is much greater.
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