Empirical Study on IPO Underpricing of GEM Listed Companies in China

This paper using a sample of 50 companies listed on GEM during October 2009 to January 2010 in China, Studying the share which is initial public offerings. Using statistic analysis applications of SPSS17.0 make regression with built model. It finds that IPO underpricing ratio quite different, and has a high average. Additional, making classification with endogenous variables and exogenous variables, and then choose appropriate independent variable. It verify the assumption that impact of each independent variable on IPO underpricing. Find that exogenous variables have bigger affect on IPO underpricing than endogenous variables. Lottery rate, company age, issue PE, ROE, issue price were negative relation with IPO underpricing. And the interval of offering day to listing day, first turnover, asset-liability ratio and logarithm of issue size were positive relation with IPO underpricing. From t-statistic can know that issue price-earnings ratio prob was most remarkable.