IPO Book-building Reform and the Problem of IPO "Three Highs" in China Stock Market:A Perspective of offline Institutional Investors' Quotes
研究了2009年IPO询价制度改革后，机构投资者过度竞争导致IPO定价过高，引发“三高”问题，并发现竞争越激烈，未来股价跌破发行价的概率越大。
After the reform of IPO book- building mechanism in 2009,the problem of IPO three highs in China stock market is very serious.This paper studies these problems from the perspective of institutional investors' quotes during IPO book- building.We find that after the reform,unreasonable arrangement of IPO book- building mechanism results in the over- competition among institutional investors,which further results in IPO over- pricing,and leads to the problem of three highs.Besides,we find that with the increasing of institutional investors' competition,the probability of the stock price below the issuing price increases in the future,and the abnormal return decreases more.This research opens the black box of IPO book- building process with Chinese characteristics and discloses institutional reason of unfairness during wealth allocation.