The research on influential factors of IPO short-term returns

Based on data of China´s IPO (Initial Public Offerings) market in recent years, this paper conducts analysis on influential factors of the IPO short-term excess returns, contrasting interpretation strength of relevant theories towards the market. It´s proved by empirical evidence that the Signaling Theory plays better than the Winner Curse Theory in interpreting the short-term excess returns. In view of the imbalance between supply and demand, the our research indicates that the issuance scale contributes much to the abnormal excess returns; prediction difference among analysts also inflicts obvious influences on short-term excess returns; in view of information asymmetry, the return on average assets (ROAA), the growth rate of net profits, and the number of reports on prediction do play the same role with the issuance scale; the comparison between different boards proves that the abnormal short-term excess returns in the Main Board is not obvious as expected. However, the situation in the pioneering edition behaves more seriously.