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Has The Introduction Of Bookbuilding Increased The Efficiency Of China's Ipo Pricing?, Jiehui Fei

Dissertations and Theses Collection (Open Access)

Book-building is commonly adopted in global primary markets and regarded as the most efficient pricing method for accurate IPO pricing by literatures. China has introduced book-building in 2005 to increase IPO pricing accuracy and the capabilities of domestic institutional investors. However, with the current IPO data from China, I find the level of under-pricing has unexpectedly increased after book-building, which is against the empirical studies of a few domestic papers. Secondly, there's some evidence that with better information disclosure from issuer-side through book-building process, the signaling and ex-ante uncertainty effect that previously caused under-pricing has been reduced. But there're unique …