Analysis of influencing factors of IPO underpricing based on rough set and support vector machine

The high underpricing of IPO in our country has affected the healthy development of capital market, which decreases the function of resources allocation. In this paper, the main influencing factors of IPO underpricing are analyzed based on the attribute reduction of rough set theory by using the data of A-shares listing in Shenzhen Stock Exchange from 2007 to 2011. Then the support vector machine is used to test and verify the rationality and validity of the result of attribute reduction. The result shows that the factors such as the profitability, solvency, capital structure, development capacity of a company, the turnover rate on the first day of listing and the issue scale et al. have significant influence on IPO underpricing in China.