| A Theoretical Analysis of Underpricing in IPOs Based on the Irrational Behavior of Investors |
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| 引用本文： | XIONG Hu,MENG Weidong,ZHOU Xiao-hua. A Theoretical Analysis of Underpricing in IPOs Based on the Irrational Behavior of Investors[J]. 保鲜与加工, 2007, 0(10): 138-143 |
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| 作者姓名： | XIONG Hu MENG Weidong ZHOU Xiao-hua |
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| 摘 要： | Employing the standpoint of irrational investors in the behavior finance, the authors study the relation on the irrational behavior of medium and small Investors and underpricing of IPO in our country. The paper premises that a revenue-maximizing issuer will be regarded as the target function, and the rational institutional investors can be delegated the task of holding the stocks in the after-market for resale to the irrational medium and small investors--thereby extracting surplus from them, finally the issuer can maximize their expected revenue. We model the process mentioned above and find that the high underpricing of IPO in our country has the direct relation with numerous the irrational medium and small investors existing in our country who cause the underpricing.
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| 关 键 词： | behavior finance underpricing in IPOs irrational behavior medium and small Investors |
| 修稿时间： | 2007-08-30 |
A Theoretical Analysis of Underpricing in IPOs Based on the Irrational Behavior of Investors |
| |
| XIONG Hu,MENG Weidong,ZHOU Xiao-hua. A Theoretical Analysis of Underpricing in IPOs Based on the Irrational Behavior of Investors[J]. Storage & Process, 2007, 0(10): 138-143 |
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| Authors: | XIONG Hu MENG Weidong ZHOU Xiao-hua |
| |
| Abstract: | Employing the standpoint of irrational investors in the behavior finance, the authors study the relation on the irrational behavior of medium and small Investors and underpricing of IPO in our country. The paper premises that a revenue-maximizing issuer will be regarded as the target function, and the rational institutional investors can be delegated the task of holding the stocks in the after-market for resale to the irrational medium and small investors--thereby extracting surplus from them, finally the issuer can maximize their expected revenue. We model the process mentioned above and find that the high underpricing of IPO in our country has the direct relation with numerous the irrational medium and small investors existing in our country who cause the underpricing. |
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| Keywords: | behavior finance underpricing in IPOs irrational behavior medium and small Investors |
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