Empirical Research of Influence Factors about IPO Underpricing in China's Growth Enterprise Board

Initial public offering underpricing phenomenon exists across the world. We use the stock shares publicly offered and listed from China's GEM opening to July 8, 2010 as the sample. Firstly, We use t-test to compare the level of Main Board stocks and find out that there is no significant difference between the two boards. On this basis, we select 35 variables in this research. Through correlation test and multiple linear stepwise regression method, we find out that the first day of new shares rose and the first day turnover rate have significant impact on the rate of IPO underpricing. The empirical analysis indicates that speculative bubble is the main reason for the high degree of IPO underpricing in China's GEM.