Abstract:

The investors investing on stocks have been gaining more earnings than the others who have been using other investment instruments since 1970s. But as a result of financial crisises the secondary earnings of IPOs’ began to decrease and the investors experienced huge costs by the2000s. Nonethless public offerings declined to little or no. Within 2004, by the recovery of macroeconomic indicators the public offerings restarted. Although it isn’t awfully stable, recently the public offerings go on accretely. It’s extremly important to price the IPOs fairly. Because, if it is underpriced a situation,which is called“underpricing phenomenon” and let the investors to gain huge earnings but disadvantageous to issuers, occurs. If it is lower priced that time a damnification to investors is discussed. By this paper the existent of underpricing phenomenon of IPOs’ by years from 2003 to recently was tested. And the determinants of this phenomenon and seriousness of the determinants was analysed by a statistical method.

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