Analysis of the Impact of Investor Sentiment on IPO Underpricing: Perspective from GEM Manufacturing Firms

The IPO phenomenon is a hot issue based on the financial field of listed companies. China has underpricing, and underpricing new shares in much higher than that other countries. Unlike western countries, China's repression stronger, environment special, there are more retail investors stock market, which obviously influenced by emotions have strong herd mentality. negative impact capital market. This paper analyzes reasons for investors' emotional frenzy first day closing price GEM from perspective behavioral finance. From investor sentiment, this selects proxy variables sentiment different levels markets uses multiple regression method to study underpricing. It found winning rate adversely connected with while turnover positively correlated it, corresponding policy suggestions put forward. results benefit certain