Growth Enterprise Board Initial Public Offerings:Characteristics,Volatility and the Initial-day Performance

<正>We use the Chinese initial public offering data from October 2009 to August 2010 to examine the newly-established growth enterprise board(GEB).The results indicate that the GEB has been successful and is providing a viable channel for new small and medium-sized firms to raise external capital.Four variables,the volatility variable,the turnover ratio,the winning lottery ratio and the price-earnings ratio,are important factors driving the initialday returns in the regression analysis.The implementation of the new trading-halts policy on the GEB is found to be effective in mitigating excessive speculation.Our analysis results could be used by policy-makers to gauge the effects of policy changes on the underpricing of the initial public offerings of the GEB.