Analyst Attention, Institutional Investor Sentiment and IPO Pricing Efficiency

Jinmei Zhao

doi:10.62177/apemr.v3i3.1320

Authors

Jinmei Zhao University of Shanghai for Science and Technology

DOI:

https://doi.org/10.62177/apemr.v3i3.1320

Keywords:

Analyst Focus, IPO Pricing Efficiency, Institutional Investor Sentiment, Registration-Based Reform

Abstract

Against the backdrop of the continuous deepening of the registration-based reform and the emphasis on self-reliance and self-strengthening in science and technology in the 15th Five-Year Plan, the IPO pricing efficiency of the STAR Market, as a core board serving hard-tech enterprises, has become a key issue of concern in the capital market. This paper takes the listed companies on the STAR Market from 2019 to 2024 as the research sample and systematically examines the impact of analysts' concerns on the IPO pricing efficiency and its mechanism of action. Research has found that analysts' attention has reduced the efficiency of IPO pricing. Further research has revealed that analysts' attention, by enhancing the sentiment of institutional investors, has exacerbated the degree of IPO underpricing, verifying that analysts have a tendency to cater to institutional investors and amplify irrational market demands during the information transmission process. The research conclusions of this paper have certain theoretical significance and practical implications for regulating the professional conduct of analysts, improving the information disclosure system, and enhancing the IPO pricing efficiency under the registration system.

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